As it never pays to give market advice let’s call this a stock market warning.
Donald Trump has expressed his glee as to the stock market performance during his tenure. His tenure is over! How goes the market?
Taxpayer money has been the principal support of these markets. Yes, your money and that of the less fortunate, who don’t own equities, is the genesis of the market strength.
Trump and Mnuchin have been relying on an executive action from 1988, instituted by President Reagan, to manipulate markets. It is called the Plunge Protection Plan.
If you believe, as I do, that Trump is dead meat, I suggest you heed this warning, at least to think through the probabilities and reasonableness of continuing stock advances after November 3rd – possible before. The Plunge Protection Plan will go quiet with Trump’s demise. He will have no need to pump markets for political purposes nor, as he has no stock portfolio, for personal gain. The manipulation will cease during his lame duck interval. It is unlikely the Plunge Protection Plan will be reinstated for market manipulation by the Biden administration.
If you believe in the markets for good reasons other than its activity ignore my warning. If not, forewarned – forearmed.