The bottom line is that the market is done with making new highs on the “hopes” of lower taxes and deregulation and is now waiting for action. Last week’s failure to repeal Obamacare was a big blow to the administration and it puts doubt into many investors’ minds. The Republicans brought a vote to do so no less than 63 times with success, and President Trump couldn’t get them to do it once. The consequences for your portfolio could be cataclysmic, especially if you are a retirement investor.
If a President can’t follow through on his promises through a Congress that’s totally controlled by his own party, what can he do? He’s learning the hard way how politics work.
The original Obamacare took over a year to get passed. It was the largest new government entitlement program in 50 years and succeeded by a single vote. This is primarily because Senator Arlen Specter of Pennsylvania changed parties. So, it really wasn’t surprising that they gave up on this in only two weeks.
My concern is that repealing Obamacare was supposed to be the easy one. Just wait ‘til you see the battle over tax reform.
The rumor is that Congress will have another go at it next week. I would assume they would play the political game, build a consensus and make sure they have the votes before they play the Trump game of ‘my way or screw you’. It works in business, when you have leverage, but never in politics.
When building your retirement master plan and managing your portfolio, be sure you are set up properly to get the best returns…but with the least risk possible. Or what I like to say on my show “Invest for need, not for greed”™. It’s what we try to do for our clients every day.
Now is the time to review, not only your portfolio, but your overall master plan. Things have changed and it’s time to Trump up your portfolio!
As always, feel free to contact me with any comments or questions.