Market Strategy Radar Screen Weekly February 27, 2017

 You Say Yes, I Say No

Equity market remains resilient as Washington is mired in contention

Over the course of the last few weeks since the election we have met with a wide and varied group of investors. No matter which side of the political aisle they perch on they voiced a growing concern with the changes that the new administration is trying to effect in a short period of time as well as discomfort with the level of pushback from all sides concerned.

Not just a few of the folks we spoke with last week in and around the markets were worrying that with all the ruckus, the cart could be put before the horse and ultimately detour indefinitely those agenda items that might be less contentious while taking focus and aim, and granting the fast lane to the more complex and contentious issues tied to political differences, immigration, possible border taxes, trade policy, and the Affordable Care Act.

Among investors with whom we met last week were a number who expressed concerns that recent levels of political rhetoric, wrangling and debate from both sides of the aisle appeared to be getting worse not better and could delay implementation of the much-needed economic stimulus (via infrastructure)—perhaps indefinitely.

Donald Trump’s “The Art of the Deal,” and Dale Carnegie’s, “How to Win Friends and Influence People” along with an appreciation for the art of mixed metaphors look to us as all part and parcel of what is needed to digest a transitional process taking place in Washington that has the complexity and intricacy of a Rube Goldberg device that could be summarized in a touchstone phrase from Monty Python: “…and now for something completely different.”

For investors, the market, Main Street and perhaps the rest of the world we suggest it might be good to ponder that the key to finding success amidst the current political mayhem may well be to “Keep Calm and Carry On”, as well as stay patient, keep expectations right-sized, fasten seat belts and enjoy the ride.”

Ultimately, the proof will be in the pudding—but for now, the desert is still in the making.

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