— Eight years ago my initial reaction to the then surprise election of Donald J. Trump was that it was a black swan but we’d survive it.

— I had to change my tune the next day when the market took off like a rocket.

— This morning half of the country is in a state of shock and disbelief on the ramification of a second Trump administration.

— Why the market isn’t.

Image Source: Pexels

Black vs. White

BLACK — Eight years ago my read on the surprise election of Donald Trump was that he was totally unqualified for the the job and that the market would react negatively to his election as his administration would create uncertainty which the market always hates. This would cause the markets to crater in the short term. As clearer heads prevailed among those advising him the market would be stabilized and begin to move upward again. Remember he inherited a good economy from Barack Obama and the Fed was keeping its thumb on rates for most of his term. (Ladies and Gentlemen we have a Black Swan)

WHITE — My initial reaction to Trump administration one was completely wrong. Why? The stock market has but one major aim, making money. It does not care whether you are a Republican or Democrat. It has no moral compass or ethic. It’s all about profit. The promise of a 2 trillion dollar tax cut and deregulation, bare-knuckled capitalism, was the trigger for the continuation of the Obama bull market. This is exactly what we are seeing today. (I Need New Glasses–That Black Swan Was White!)

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