Originally Posted by Rain Man:
Okay, I don't know if we can have a discussion about this without getting banished to DC, but I think we can be agnostic on the politics and just talk investment implications.
What should we be doing differently after the election? I generally don't pay much attention because the two main parties are pretty effective at blocking each other's agendas and making change slow. But if one party now holds all three elements of the legislative and executive branch, and also holds the Supreme Court, we could be in for some changes.
Tariffs is probably an obvious first step. It'll make imported goods more expensive, so it seems like companies with domestic production capacity might have an uptick in revenues and profits. I suspect they'll also raise prices to just below the tariff pricing, because why would they not? Who are we talking about here? Who stands to make a killing?
Will Tesla thrive? It seems to me like they're probably going to be getting some pretty good subsidies or something.
Oil? Less regulation, more drilling. Does that mean more profit?
I think if any radical economic policy shifts occur, we're at risk of unexpected outcomes, and unexpected outcomes are more often negative than positive. Will the entire economy and stock market slow down? Should we be moving more to international stocks?
I decided to start buying in on a couple of gold mining companies based in Canada, and also a South American utility provider. I've been needing a little more international exposure anyway, and I think these stocks will do fine if the American economy hits turbulence.
What should we be doing?
No sarcasm- great questions.
Who stands to make a killing? Probably lending companies as Americans appear to be unable to stop spending regardless of how out of control prices get. Tariffs likely make things more expensive. If the promises of deporting illegals meet the intended scale, that will also likely raise prices on goods sold.
Will Tesla thrive? Uh, yeah. And I don't think that is good for us in many, many ways. Folks that own the stock will definitely enjoy the ride.
Oil is a global market and I am not qualified to hazard a guess on that. If the broad economy goes up, so will demand for oil. Will that mean more profit? Probably?
Will the economy/stock market slow down? International? We know the economy is not the stock market, etc etc. Back to the deportation comment. By definition, if labor shrinks, the economy follows. The market probably follows. The International question is something I have been thinking about and do have tens of dollars invested now. Don't love the risk exposure, but not sure it is as risky as I perceive.
What should we be doing? Age old and sincerely awesome question. Need to really sit down and study this one. I know one thing is for sure, you should watch what I do and invest in the opposite- results are on your side with that approach.
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