Some things do not mix well, politics and economics certainly are two. It has been important for investors to keep this in mind.
Obviously, there are times that the political realm overwhelms economic life, but in most ordinary circumstances, this is infrequent. Certainly less frequent than the fear of such a prospect. In the United States, rarely has politics driven economic life. There are more instances where economic events affect political events; think of a few of the financial crises of the past determining subsequent political events.
So astute investors put more stock in evaluating business prospects than watching the reality show in our nation’s capital. The recent past has been a good case in point that shows how the two can be seemingly separated. Our economy is doing well. It is growing steadily, without much inflation, and providing more and more jobs. Our trading partners and other nations around the world are for the most part doing well too. So even though politics are grabbing the nation’s attention, business prospects continue to be good; stay steady, my friends.
The Lonely Bull