Establishment vs Non-Establishment, The new Paradigm
As we outlined on Monday, from a market standpoint the Macro’s are in place and I will discuss those Macro’s more in coming days. For now let’s move to what is important for you in 2016, the US election. If your listen to the media you may think it is ISIS, Korea, China, or Draghi, and yes they are pieces in the mix, but the Establishment vs Non-Establishment fight is, in my opinion, the number 1 piece in our future.
To me the Tea Party Republicans have more in common with the Progressive Democrats than they do with the old Republican Party. Over the holidays I read Robert Reich’s new book “Saving Capitalism”. If you are in the bottom 80 % of the population you need to read this book twice, once to get the idea entrenched in your mind and once to figure out your game plan leading to November. In this fight the Republicans have the upper hand at this point. Their two leading candidates, Trump and Cruz, are ahead of establishment candidates Rubio, Bush, and Christie. Democrats have an establishment candidate, Clinton, in first place. Unless Bernie Sanders gets legs, or Elizabeth Warren enters the race, they are in trouble.
More on what this means in coming days/weeks/months.