WASHINGTON, December 20, 2016 – For market and Election 2016 junkies alike, Monday’s official Electoral College (EC) tally likely marked the end of the beginning. Despite a barrage of “fake news” stories from the dying MSM, claiming anti-Trump, anti-Constitution agitators were on the verge of persuading the Electoral College to nullify Donald Trump’s presidential victory, the final EC vote concluded largely as the November numbers predicted.
Trump’s final electoral vote tally registered 304 electoral votes from the 306 he won in November. But surprisingly, Hillary Clinton lost even more pledged electors than Trump. What many voters fail to understand is that the goal in each U.S. election is not exactly to win the popular vote—although that’s always a nice bonus. Rather, the idea is to win enough state votes to capture a majority of electors.
Try to explain that to this out-of-control left-wing Democrat dead-ender who tried to disrupt Wisconsin’s formal electoral vote on Monday.
No, ma’am, it’s decidedly not your America. Thank God.
We won’t get into election wonkery further here, but the whole notion of an “Electoral College” enshrined in the U.S. Constitution was to prevent a future election like this one in which a huge or densely-populated state popular vote could end up overwhelming other smaller or less densely-populated states, with the potential for such a state or states to dominate the presidency for decades.
Once again, much to leftists’ chagrin, that clunky, horrible, unfair Electoral College worked its magic once again as it was designed to, despite a first-in-history organized campaign by the losing party to use the Electoral College to overturn Donald Trump’s surprise victory by threatening and browbeating his electors in an unsuccessful effort to coerce them into jumping ship.
What amounted to last almost-serious obstacle blocking a Trump presidency has now been overwhelmingly crushed. This morning, traders and investors resumed the 2016 Trump-Santa Claus Rally, albeit at a modest pace during a week when many traders’ thoughts return to this weekend’s Christmas celebrations and to their families.
But, though muted, the post-election celebration on Wall Street continued in Tuesday trading. “In one of the most euphoric praises for Donald Trump and the president-elect’s fledgling administration to date,” notes ZeroHedge (somewhat ungrammatically),
“… Bridgewater founder Ray Dalio said economic changes under the Trump administration may be more dramatic than shifts from “the socialists to the capitalists” in the U.K., U.S. and Germany from 1979 to 1982, and predicted that ‘we are about to experience a profound, president-led ideological shift that will have a big impact on both the US and the world.’
“Comparing Trump to Margaret Thatcher, Ronald Reagan and Helmut Kohl, Dalio said the incoming administration may have a much bigger impact on the U.S. economy than can be measured by tax changes and fiscal spending. The Trump era could ‘ignite animal spirits’ and attract productive capital.
“In his summary of Trump’s economic policies, Dalio urges readers to read Ayn Rand ‘as her books pretty well capture the mindset. This new administration hates weak, unproductive, socialist people and policies, and it admires strong, can-do, profit makers. It wants to, and probably will, shift the environment from one that makes profit makers villains with limited power to one that makes them heroes with significant power.’”
(Bolding via ZeroHedge.)
Ray Dalio’s euphoria aside and better yet, we might even be able to start calling Christmas Christmas again for the first time in what seems like ages. May your days be merry and bright…
In closing, this is probably not a great week to put on daring new positions in your portfolio. Volume will drift downward as the weekend approaches, and lower volume days can give you a false sense of where the market is going next. But now that at least Act I of the left’s endless politicking has concluded, we can spend the final week of 2016 figuring out how to reconstruct our various portfolios to take advantage of what will clearly amount to a major paradigm shift in investing.
Now, if we—and the markets—can avoid having to deal with the kind of ongoing terrorist disasters that have once again visited the Eurozone… well, let’s not think the worst. Let’s just relax and get ready to roll up our investing sleeves in 2017, helping Make America Great Again.