In The Lonely Bull

And the elephant is Republican red. What does this mean for investors?

Usually politics has much less to do with economics than most think, but there are some influences.  With Republicans now controlling Congress, we can anticipate that business regulation has probably reached a high point for this cycle.  There now will be concerted efforts to reduce regulatory burdens.  This could be helpful to certain sectors, like banks.

Expansionary fiscal budgets are probably out the window. Deficit reduction will be the word.  So expect tighter money over time and higher interest rates.  The tone toward business may change from adversarial to cooperative.  Tone can lead to more optimism and perhaps greater business investment and more economic growth.

Beyond these few obvious factors, it is hard to make too much prediction. We are hoping for the best.  However, trends are already pretty good, perhaps there now may be even more of a tailwind.  We will continue to watch events and analyze them for their investment impact.  Stay well and prosper.

the Lonely Bull

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