How We Are Adapting Our Trading to the Ever-shifting Policies from Washington

Thoughts on the Market

March 2, 2026

Over the past thirty-four years I have stayed clear of politics in my writings.  Whether I was writing publicly for Forbes, in my book, or privately for my investment clients, I have tried to maintain a strict policy by which my writings should focus on an analysis of market trends and market dynamics rather than judging or choosing sides in the never-ending game of political drama.  That doesn’t mean that I am not keenly aware of governmental policies;  I follow both fiscal and monetary policies very closely as they play an important role in my financial analysis.  To the extent I have strayed from my neutral stance, it was typically when I lambasted Federal Reserve monetary policy that was grotesquely inconsistent with the Fed’s legal mandate as set forth in the Federal Reserve Act of 1913. 

Specifically, the Federal Reserve’s legal mandate is to promote maximum employment and stable prices.  The Fed’s policy is supposed to be geared towards promoting non-inflationary growth, and it has clearly missed the mark more than a few times.  I have been particularly vocal about Jerome Powell’s bungling of monetary policy and misreading the economy’s obvious inflationary pressures; especially after covid when he made his unfortunate comments about inflation being transitory.  At the same time, I have also noted how Powell has earned my respect by handling the shocking level of personal abuse from the president in a professional and dignified manner.  But since Powell is not an elected politician, I felt few constraints in attacking his policies.

I am writing about this because I have remained silent during seven presidencies, but I have to confess that President Trump is sorely testing my convictions.  Trump 2.0 has been nothing less than remarkable in many ways. (Please note that the word “remarkable” does not necessarily imply “good”).  Perhaps the words of the Supreme Court’s Chief Justice, John Roberts, in his ruling on Trump’s tariffs best summarizes my views.  Let me put this into context:

(Please allow me to interrupt with a bit of housekeeping: To those of you who are still thinking of subscribing, this is the week to do it, as our pricing model will change as of March 10th. To my esteemed current subscribers, have no fear: your rate is grandfathered.)