Two observations for my readers, on Donald Trump that affect investor confidence. And without confidence, investment dies.
Though he brings many of his problems on himself, never before has a new President faced such consistent, rabid opposition from the press. Again and again, the press is so intent on bringing this imperfect man down that they publish rumors as if fact. They create fictitious news from “unnamed sources” or anonymous sources, treating it as if verified or good enough. They create a sort of, what shall we all it? Maybe, “fake news.”
Second, whether or not Trump’s important legislative agenda – think health care or tax reform – passes Congress or even gets an adequate hearing, President Trump has engendered, in the investor community at least, an imperfect but very palpable optimism. Compared to the prior administration, businesses and investors can deploy capital. They are not attacked as unpatriotic greedy monsters or demonized for their successes. This is quite a refreshing change, and it encourages investment.
I’m sure a correction in the market is somewhere up ahead, but it does not seem to be on the near horizon.