How Will Governmental Chaos Affect the Stock Market?

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Post on 07-Apr-2017



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How Will Governmental Chaos Affect the Stock Market?

How Will Governmental Chaos Affect the Stock Market?By Chaos rules in Washington. On heels of the Obamacare repeal debacle the Trump White House is going to open the White House Office of American Innovation run by the Presidents son-in-law, Jared Kushner. This will be yet another power center competing for the ever shorter attention span of the chief executive. Before We ContinueClick the links below to get yourFREE training materials.

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Get 12 Free Japanese Candlestick VideosIncludes training for all 12 major candlestick signals. We caught of glimpse of the governmental chaos that is the Trump presidency and Republican controlled congress with the failure to come together with a solid replacement for the Affordable Care Act and to pass it. But the issue is really not Obamacare. It is the combination of two things. The first is Trumps attempt to apply his selective approach to business to governing. The second is the popular-back-home throw-the-rascals-out approach of the conservative wing of the Republican Party. Here is a mixture of school yard bullies and know-it-alls holding the keys to power. How will the ensuing governmental chaos affect the stock market? The Washington Postlooks at the Office of American Innovation and saysKushners project is doomed. Kushners time might be better spent teaching his father-in-law how government cannot be run like a business. As Senate Minority Leader Chuck Schumer (D-N.Y.) put it on Sunday, You cannot run the presidency like you run a real estate deal. You cant tweet your way through it. You cant threaten and intimidate and say Ill walk away. Its more complicated. He might have added: You cannot run the presidency by hiring inexperienced relatives and political propagandists with no governing skill. You cannot run government without transparency and accountability. This is not a family real estate operation. You cannot run government with the attention span of a 3-year-old, unable to be bothered with details or stick with one topic for very long. You cannot run government by intimidation and insult. Governing is an activity involving persuasion and conciliation. you obviously cannot run the White House, as Trump is trying to, with overlapping and conflicting power centers, including Kushners SWAT team, that undermine the authority of Cabinet secretaries. All of this sounds like a bad dream but it is real and is already affecting the markets. The First Thought Was the Correct One When it became clear on election night that Trump was going to be president the market tanked. Then wishful thinking set in and investors told themselves that all of Trumps talk of cutting taxes, bringing US corporate cash back to the USA and fixing infrastructure was going to drive the US economy and the stock market to new heights. In the wake of the Obama Care Repeal debacle the market is starting to fade. How bad could that get?Market Watchsays that the Trump trade is turning into theTrump disappointment trade. Markets worldwide are starting off the week spooked by Republican-controlled Washingtons failure to repeal and replace Obamacare. That has dented confidence in President Donald Trumps ability to muster enough political support to deliver on his promises of reform, seen as helping drive the recent rally for equities. The markets are having their own Trump tantrum, as investors seriously doubt whether the presidents abrasive style will work in Washington, said Kathleen Brooks, research director at City Index, in a note. The markets first take on Trump was correct. He has too often succeeded in life at the expense of others. He is not a coalition builder and not a detail guy. The Donald does not share. And all of this spells chaos for government and down times for the market. This in the end is good time to use options to protect your portfolio and to profit from a the likelihood of repeated slides in the market as more bad news arrives.