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Political Commentary

Posted on by yourpersonalportfolios

Politics and Investing

TRUMP INTERFERES WITH ECONOMIC ACTIVITY . During the Biden administration the economy performed in solid, steady manner. There were worries that the inflation caused by pandemic and post-pandemic issues (production slowing due to less demand during the pandemic and production failing to meet the pent-up demand when the pandemic ended). The resultant inflation caused prognosticators to worry about inflation causing a recession. Inflation did occur but a recession never happened. The stock market weathered this pessimism and GDP stayed positive.

Even though the stock market rose when Trump was re-elected, the market probably would have done better in the long run if Trump had not been President. In particular, his decision to disrupt our global trade markets with irrational sweeping tariffs definitely is going to have bad economic side effects. The solid nature of the Biden economy impact so far has masked the bad decision making by Trump and his administration.

Trump after leaving office as the worst President ever, got re-elected by out messaging the Democrats by repeatedly lying about the economy and the national and international situation. Trump doesn’t understand our constitution, and he only cares about what is in it for himself. He is an elitist, privileged and arrogant. This perverse attitude is not good for the economy or financial markets as we attempt to survive another 4 years of the incompetent Trump presidency. Investors should be cautious.

Market Commentary

Posted on by yourpersonalportfolios

At this time (mid -2026) the stock market seems to be overpriced. That is, PE levels are at the high end of their historic range. This is due to excessive liquidity injected into the economic system from efforts by Trump reducing taxes, particularly for high earners and Cotporations. The cash has to be invested somewhere and the best investment in the past year was in the stock market. However, inflation is refusing to go back to the Fed’s goal. As economic activity is starting to waver because of Trump’s tariffs and because of the war with Iran. When this has occurred in the past the stock market has been vulnerable to a correction. Most economists are predicting a growing economy in the next year, with unemployment remaining low and production improving, in spite of this a correction is very feasible, due to Trump’s erratic behavior (tariffs on tariffs off, handling of Gaza, inability to end the War in the Ukraine, the war with Iran, Greenland, dismantling of government without legal authority, etc.).