My Perspective on the Markets Following the Election

This has certainly been an action-filled week.  Trump’s landslide victory and the likely Republican control of Congress will have huge implications for the markets over the coming years.  I almost always refrain from making any sort of political commentary, but this election warrants a few comments.  First of all, it is clear that the cumulative impact of inflation is taking a toll on the average American.  The Fed can talk all day about inflation moderating and dropping towards the Fed’s target rate of 2%, but their talk is meaningless to the tens of millions of Americans who are seriously struggling to pay their bills.  

It is eminently clear that the Democratic Party has lost touch with working class Americans.  Bernie Sanders, the Independent Senator from Vermont who caucuses with Democrats, wrote a scathing commentary after the election that pretty well summarizes the economic reality in America that I have been writing about for many months.  "It should come as no great surprise that a Democratic Party which has abandoned working class people would find that the working class has abandoned them," Sanders wrote. "First, it was the white working class, and now it is Latino and Black workers as well."

He chastised Democratic leadership for defending "the status quo" while Americans "are angry and want change."