Earlier today I replied to a posting on Facebook wondering why the stock market has been going up in light of the continuing chaos and uncertainty in the Trump administration and the country in general. The short answer is that in spite of Trump in the White House, life goes on. Here are my thoughts:
There is a perverse logic to the stock market continuing to rise. The thing the market hates the most is uncertainty. With the chaos in the White House one would think that implies uncertainty, except the chaos is actually providing a little bit of stability. As long as the chaos continues nothing will get done which means that the existing rules, etc. will stay as is. Add two other factors:
- the economy that Obama left behind is doing well for most of the country. Production is up. Profits are up. Unemployment is at the lowest point since before the great recession started. Borrowing is still dirt cheap. Inflation is low. And;
- there is promise of fewer regulations in the future should the chaos end.
Note: This is neither an endorsement of the stock market nor a suggestion to invest (or sell). It is just a few thoughts, not advice.