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Political Commentary

Politics and Investing

Even though the stock market has risen during the Trump presidency the market probably would have done better if Trump had not been President. In particular, his decision to disrupt our global trade markets with irrational tariffs definitely had bad economic side effects. The pandemic’s negative impact on the economy masked this bad decision making by the Trump administration.

Market Commentary

At the this time (the end of 2020) the stock market seems to be overpriced. That is, PE levels are at the high end of their historic range. This is probably due to excessive liquidity injected into the economic system from  efforts by Congress and the Federal Reserve to save the economy from the economic slowdown due to the pandemic. The cash has to be invested somewhere and the best investment at the moment is in the stock market, particularly with low inflation.