By Gary Tanashian
Disclosure (which I feel, given the post’s content, should be reiterated): I am not short even a single equity of any kind. I am only long selected stocks and cash at this time, but surely subject to a change of status in the future.
Why, did you know that in a note to clients Tom Lee wrote that Donald Trump’s term could usher in major bull market akin to those preceded by Ike and Reagan? He did, in a note to clients and the MSM really wants you to know about it! Now, there is a case that eventually his favored areas of Energy, Mining, Basic Materials, etc. will out perform. But that word ‘eventually’ is an important one, unless you are a died in the wool trickle downer willing to ride the big correction or bear market that is likely first.
Trump win could produce major bull market – here’s what I’m buying
‘Notably, the two longest bull markets in history 1953-1974 and 1982-1999 were preceded by a Republican ‘revolution,’’ he wrote.
Lee likened Trump to the Republican presidents in this way; Eisenhower in the early 1950s invested in infrastructure, and Reagan pursued tax cuts and deregulation, Lee wrote, much like what Trump has promised to carry out in his presidency.
Okay fine, can’t argue with history, can we? So let’s review some. There is a supposed republican revolution taking place. Fine, I get that. The people are tired of being taxed and inflated to death. Well, the first thing at least, looks to improve but much more so for the richest Americans. The little guy hoisted Trump on his tired shoulders and in time, may see that he screwed himself again… unless of course the bounty trickles down this time. Under both parties, the rich get… anyone? The poor and/or middle class get… Bueller?
This post was published at GoldSeek on Sunday, 27 November 2016.
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