Political issues shouldn’t play a large role in long-term strategy

Many have the impression that the post-election rally counts as “irrational exuberance,” but there’s another perspective. Stocks may be making up for a flat two-year period prior to the election. Maybe the question isn’t whether the Trump bump will slump, or not. Rather, the question is, should you be engaging in market timing around political issues? The breathtaking increase in GDP and the stock market since Nixon’s time reminds us that Presidents are temporary, but hard work, ingenuity, innovation and productivity are deeply engrained in our country. It would be great if Washington could solve tax and regulatory reform, but your investment strategy doesn’t depend on it. Nor will the success of your plan be greatly affected if the market gives back everything it has gained since the election.  Read Full Article