Graycell Advisors - President Donald Trump - credit: TIME

Lessons from a Trump Presidency

  • May 16, 2017
  • Controversies are now typical of the new administration.
  • In spite of jolting political news, the market remains in a steady uptrend.
  • Earnings and growth trump political turmoil as long as economic implications are limited.
  • The market is patient, but the patience is not finite.
  • Staying the course instead of predicting corrections has been the best course since late last year.

 

The Bottom Line


Even in a flood of alarming political news and unconventional practices, the market focuses on earnings and economic growth prospects.

 

 

It Hasn't Helped Chasing Tales


The market has been overvalued for, well, a long time, based on quite a few metrics often cited, and ongoing commentary from many experts and non-experts. In the past couple of articles, including Is The Market’s Hour Up, we had highlighted some missed calls from leading and well-respected market oracles. But perhaps, it is not the fault of the prognosticators. After all, the market has resisted all efforts in applying traditional valuation templates.

The truth has been that over the past six months a better strategy has been to stop predicting a Correction and staying the course in a rejuvenated Bull market.

The onslaught of unsettling political news has investors on the edge and fearing a sharp correction. But such news has not had a negative impact on the stock market performance.

Instead, the market almost appears insulated from such concerns and remains focused for now on key growth metrics, particularly earnings that are generally coming in better than expected. This continues to support valuations.

The rest of the article can be read at Seeking Alpha

 

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