When it came to the presidential election, I had no horse in this race. I hated both major candidates equally, for different reasons, and voted for Gary Johnson. Trump is a statist just like Hillary, but he wasn’t “the establishment.”
With that said, I see that many people who leaned Democrat are almost in tears over President-Elect Donald Trump.
They are dumbfounded. People allegedly say Trump is a misogynist, racist, xenophobic, ignorant and intolerant egomaniac. How could anyone with these traits win?
This description of Trump might be true, but it’s not the reason why voters picked him.
Rightly or wrongly, they completely miss the fact that this election wasn’t about Trump.
Why Trump Won
It’s ironic that Bill Clinton’s advisor James Carville once said, “It’s the economy, stupid.” This election was anti-establishment and not about politics as usual. The election was a repudiation of:
- The Obama administration policies
- The low and slow economic growth
- Hillary Clinton’s years of political favors and corruption
- The media collusion (news and entertainment) with a bias toward one candidate
- The establishment — Democrats, Republicans and DC in general
- The increases in taxes
- The increases in regulation on small businesses
- Elitism by all of these individuals ignoring the average Joe and Jane.
It doesn’t matter what you think of Trump, and that was the issue with why polling, political pundits, and elitists got this election completely wrong. Not since the founding of this republic has its citizens given such a big “F-U” to the ruling class.
Is Trump the right person for this? That remains to be seen. Donald Trump is certainly no Ronald Reagan.
What Will Happen to the Economy and your Investments?
Other issues aside with regards to Trump’s political stance, how will a Trump presidency affect you economically?
From what many media pundits said the Wednesday morning after the results, you would expect the world would be ending. But is this really the case?
From what we know about Trump’s plans, some of it should be good news. Some of it, if implemented, would be horrible to our stock market and economy.
Personal Capital gave a great detailed explanation and PDF report of what the president-elect means for your finances. They go into the short term and also possible long term effects of a Trump presidency. It breaks down Trump’s proposals dealing with: taxes, Social Security, education and health care.
Their information can be summed up by this quote from the article.
“The bottom line: Investors should not let short-term political drama drive their long-term financial priorities or investment decisions.”
Here are some of my additional thoughts as to a Trump in the White House.
Trump’s tax cuts on individuals and businesses and his pledge to freeze and decrease regulation would be a net-positive. It will help small businesses expand and put overall more money in our pockets. The removal of Obamacare will also help the denial of increases that have plagued the law.
This is a great day for media outlets like this very website. The traditional media have been taken to task for their bias, and investors have looked to other outlets for their information. It’s been said the media was our “fourth estate,” not some lapdog as seen in Third World countries. The winning of Trump proves individuals are against this as well. So as an online publication, Investor Junkie needs to step up to help fill the gap missing in the traditional investing media.
Trump’s trade policies, if fully implemented, would be horrible and might even create a trade war. Fortunately, his economic advisors are all pro-free trade, so you’ll have infighting within his own advisors. Being a Washington outsider, it’s not clear how much of a wild card Trump will be with his changes and what exactly he will represent.
The stock market will be volatile for awhile, but that should be expected from an upset. Long term, let’s take a look-and-see approach. The goal should be to stay the course. The world will not end tomorrow, nor in January with his inauguration.
It will take many months, if not years, for all of his policies to be implemented and your investments or the economy to be affected. There will be winners and losers because of the many years of previous market manipulations. If things like Obamacare are repealed, it will hurt some stocks. But only because of previous false economics and not a policy from Trump.
What say you about your investments, the election and President-Elect Trump?