Even if you pulled for Donald Trump, the comprehensiveness of the Republican victory would have probably still surprised you. We didn’t know and stated so. Our position was a wait and see. Now we can begin to assess likely policies and adjust portfolios to best benefit from them.

The initial reaction to the election results was to sell the market off, and then as it became apparent that it was a Republican sweep, markets rallied. After this initial euphoria, markets should settle back down as deeper analysis is made of probable risks and rewards.

This rally has really been quite narrow with the broader market left behind. Money flows have not turned positive, so we are suspicious of the rally’s longevity. We are, however, likely to be adding to portfolios in the near future as we grasp new opportunities.

Stay steady, my friends.

the Lonely Bull