Topic: How To Invest

What is Pat’s commentary for the week of July 16, 2019

Article Excerpt

Gut reactions to U.S. political developments play an enormous role in stock-market sentiment these days—more than any time since the 1930s. Some Republicans think President Trump is sure to keep the U.S. economy growing nicely for years to come, assuming he wins a second term. Their main worry is the outcome of the 2020 U.S. election. Trump-supporting investors fear that if the Democrats win, they’ll act on all the ideas mentioned recently by candidates for the 2020 Democratic Presidential nomination. These include free medical care for every American resident, regardless of citizenship or immigration status; free college education for everybody who wants to attend; forgiveness of existing student debt; phasing out of fossil fuels; guaranteed income for the unemployed, (even those unemployed by choice); and an open-borders immigration policy. They could pay for all this by revoking the Trump tax cuts, and raising gasoline taxes to $10 a gallon. If the economy suffers and tax collections fall short, they hope to appoint…

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