Posted by kdadmin on November 24th, 2016.
Given the fact that the stock market is up nearly 3%, and bonds are down by 2% since the election, a friend suggested I may be having a side of crow with my meal. Instead I’m celebrating with Coqau Vin. Here’s why …
I was pretty rough about the stock market on election night. And yes, the stock market has recovered a bit since then. And yes, the bond market is down slightly. But, no, if I had it do over again, I still wouldn’t have bought into the stock market on election night. My friend called me cocky. So … I figured I’d cook Coq au Vin (“rooster” with wine).
The drawing above comes from Perry Taylor, one of the few French artists who accurately captures “le bellevie” (the good life). He writes about Life in the Slow Lane in France. You can find out more about him here. Anyway, I think this drawing accurately represents what many of us in the financial field have resorted to as we thought about the likely impact of the Trump cabinet’s financial plan for the economy. The short answer? It’s like throwing gasoline on a bonfire.
Our economic and political structure is built on a system of checks and balances, so that no branch of government can run amok, wielding oligarchical power, holding others at their mercy. Or, so that has been the idea.To that point, just seven days after the election, Janet Yellen, chair of the Federal Reserve, issued a polite, yet clear warning to the Trump cabinet about the dangers of its campaign promises and reminded them of how the Fed would respond (hint: it ain’t good for stocks).
But today is a national holiday. So, I don’t want to aggravate you. Today is a day to enjoy with your family, friends, and whomever else you can tolerate or enjoy over lots of food and fun. So, go have fun! Clomp through the snow or play on the beach. We’ll get back to this sort of business, and how the market works, tomorrow.