Unpredictable and Uncertain, Yet Good for The EconomyMonday January 30, 2017 18:09
President Donald Trump completed his first full week in office and it has become extremely evident that what you see is what you get. In other words, the Donald Trump that campaigned for president, with all of his strengths and weaknesses, is the same Donald Trump now occupying 1600 Pennsylvania Avenue.
Our 45th president is just settling into his new job and after one week, his demeanor and the way he accomplishes the tasks before him are very much the same as the candidate Trump and the businessman Trump.
His leadership style is unique. His inherent ability to accomplish goals on time, and under budget, as he did as a businessman seems to be spilling over to the political arena. Wasting no time, this week President Trump initiated many of his campaign promises and pledges, as he began to create policies and procedures to bring these goals into fruition.
At the same time, some of the inherent weaknesses in his demeanor continue to raise concerns. The fast weight of the presidency has not yet thickened his skin. He remains extremely reactive to issues that seem to be a moot point, with nothing to gain by focusing upon them. His most recent attention on whether or not there was US voter fraud during the presidential election is a prime example.
The Dow Jones Moves Above 20,000 For the First time in History
Yet with all the uncertainty and an unpredictable demeanor, his straightforward policies on revitalizing our economy have genuinely created a robust optimism that the US economy will greatly improve and thrive in 2017. The net result of this optimism is that the Dow, S&P 500, and the NASDAQ all traded to and closed at new record highs this week.
In just his first week, we have seen President Trump initiate procedures that would encompass massive infrastructure projects, like the wall between the United States and Mexico, and remove major regulatory policies, as in the case of the Keystone pipeline. Each of these situations could greatly enhance corporate profits in 2017.
Precious Metals Enter Correction
The risk-on market sentiment, which is a direct result of President Trump’s first week in office, has put a true damper on safe haven assets such as gold and silver. Gold prices moved dramatically lower this week, ending a month long rally which had left gold prices nearly $100 to the upside.
Although it is still extremely early in this new administration, it seems many threads that were present in campaign promises are transforming themselves into policy and procedures. So at least on the economic front, the future looks bright.
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Wishing you as always, good trading,