The Overall Situation
As we watch this coming week unfold probably the most important thing for 98 percent of investors is to rethink buy and hold which has worked for the past nine years. While I know that the party line is to not try to time the market, the fact is this is a different world now. Just saying. Read up on how to unload positions on rallys and only buy in the quiet time after extreme selling panic. Floor traders learn quickly that the time to buy is in the quiet period following a noisy decline.
You may deduce, I think a bear market is building. As we mentioned back before this Bear uncorked in our January 25th blog post, there are a lot of short Stock ETF’s that allow you to be more aggressive.
The Real Issue
The inequality and blue collar worker anger is real and are no doubt issues why Trump won in 2016. However, tariffs are not the answer. I happen to believe in two concepts, free markets and a sense of Commonwealth. What this means is that what a government does is look at the big picture and assist those sectors that need help. Look at maybe the longest piece of that thinking, the government money that goes into helping agriculture and maintaining our food supply. Maybe our answer is to redirect money from the flush sectors, technology and all of its off-shoots and assisting labor in manufacturing sectors through various means including education.