Monthly Archives: November 2016

Post-Election Circus

The Economy: The U.S. economy appears to be accelerating while the global economy turns in mixed numbers. If this divergence continues, it may be the U.S. that serves as the engine of growth that keeps a global recession at bay. While the U.S. anticipates continued acceleration due to Trump tax cuts and fiscal stimulus, the EU faces more economic uncertainty as Italeave and Irexit appear to be set for a vote. Uncertainty is the bane of financial markets as participants postpone decisions until there is greater clarity. The feedback loop can create a self-fulling prophecy. The upheaval in Washington was reflected in a bond market route that is unlike anything we’ve seen in years. Rapidly rising rates would negatively impact large sectors of our economy such as housing and autos. Uncertainty also surrounds the Fed meeting in December. Though financial markets have supposedly priced-in a ¼ percent interest rate hike, animosity between Fed Chair Yellen and President Elect Trump means that all bets are off. I sent you a letter this week in which I discussed protecting your assets in this environment. Please let me know if I can help you with your money.

Food for Thought: To put a fine point on it, it’s been a week of over-the-tops: First Up, Cornell University hosts a “Cry-In” for students traumatized by the Trump victory. Not a Sit-In. Not a Laugh-In. Not a Love-In. A Cry-In. While 300,000 teenagers serve in our military, the Cornell Masters of The Universe huddle with their barista supplied hot chocolates and bawl. Our take: All you overweened please decamp for Canada immediately. Second Up, Numerous people who were too preoccupied to vote have taken to the streets to protest the “Not My President” Trump election. Our take: You’ve successfully auditioned for The Kardashians. Third Up: This week a San Diego hi-tech entrepreneur threatened Donald Tump in a Facebook post. Facebook! Our take: The Peter Principal confirmed and the Wrath of The Secret Service, Homeland Security and the NSA shall rain down upon you. Kiss any more Venture Capital goodbye forever. The President of the U.S. has an annual salary of $400,000. Trump has announced that he will forgo the salary. Not a word from the mainstream media. The Greatest Show On Earth continues its unprecedented run! … and like you, I patiently wait for common sense and social grace to return to our Great Land. Thanks for reading More Money. If I can help you in any way please contact me at raymond.higgins@higginscapital.com. We Quarterback Money®.

Music of the Week: Tina Turner’s “Twenty Four Seven”

President Trump

The Economy: The Economy took a back seat to politics this week with the historic Trump upset and Washington now firmly under Republican control. Republican control of both the executive and legislative branches is a double-edged sword. Now there are no excuses for gridlock. The agenda had better be enacted quickly and it better show results. The demand for change which swept the elections is just that: a demand. There will be little patience for failure.

Food for Thought: Global financial markets gyrated dramatically with the Trump victory. Overseas markets tanked. U.S. stock markets fell off a cliff then bounced and screamed higher. The bond market sold off with interest rates moving higher. How this plays out is anyone’s guess. As we move into the last weeks of the year, we encourage you to review your financial picture. Year-end is always a workup to tax time. It’s a prudent idea to check your goals.

Music of the Week: Annie Lennox “Diva”

Clinton & Trump: The Home Stretch

The Economy: Call it The Pause that Might Refresh: Global economies appear to be coasting into the new year at a steady state. Neither expansion nor contraction is on the horizon. Some of the negative interest rates in Europe have returned to the positive side of the ledger. If the Chinese Communist Party organs are to be believed, growth there is powering along at 7%. Brexit is unfolding with the usual court challenges to the will of the people. The Fed meeting was a non-event and I’m beginning to think that an interest rate hike may not happen in December. Bookies have the probability at 70-80% but I don’t see a compelling reason. If the Presidential Candidate known as The FBI Suspect is elected interest rates may stay lower for 4 more years. If the Presidential Candidate known as The Russian Spy is elected, Janet and the 7 Dwarfs may push interest rates through the roof … in a hissy fit of spite before they are fired. Call it life in a 3rd world country.

Food for Thought:
1944: 18-year olds storm the beach of Normandy into almost certain death.
2016: 18-year olds need a safe place because words hurt their feelings.

Music of the Week: Roy Rogers’ “Happy Trails to You”