Market Trajectory

Andrew Carnegie guided himself with the adage ‘always forward’. The same is true for Trump. Activating tariffs on an additional $200 B of Chinese Imports, previously targeted, should not be a surprise to anyone. Maduro is on the clock. Kim Jung-un would be wise to think in much shorter time frames; and Iran should cancel any summer vacation plans.

Smart Money understands underpinning of technical and fundamental factors has market poised for significant extension higher. Democratic Congressional Leadership, combined with the policies communicated by 2020 candidates are the best campaign strategy the Republicans could hope for. Trump’s Coattails will expand the majority in the Senate and secure the Speaker’s Gavel for Kevin McCarthy.

Remember the greater the transparency the more intelligent the risk. Intelligent risk drives sustainable growth and carries the market higher.  Democratic behavior is creating an unprecedented level of transparency making Trump and Republican candidates an easy choice for Independents and moderate Democrats.

Declassification of DOJ Inspector General Horowitz’s June 2018 Report, and looming FISA Report will be the icing on the cake.  Indictments waiting to be unsealed will keep the Scarlet Letter on the Democratic Party through the 2020 election and beyond.

Low inflation, sustainable growth, and interest rates likely to go lower before they go higher is why Warren Buffet stated, “the market is undervalued at current levels.”

Does this mean just get long? No! Great thought and care are the foundation of intelligent risk. Validate the conditions I have identified through your own work, and you will be highly motivated to identify the best value and greatest potential.

Please note my biggest caution is to stay away from all media stocks. 1st and 4th Amendment protections will be enforced and the financial burdens on these entities are likely to be significant. They brought this upon themselves. The Wild Card is if they will be proactive or ignorant in securing the free speech and privacy of their users.