Politics is a daily moving target. Every two to four years, our world can turn upside down. The big issue for us is to find ways to make money for our clients no matter who is President.
1. Election Updates
On January 20th, we will have a Democratic President, Republican-led Senate and a Democratic-led House of Representatives. This is a divided government and each side has experienced both victories and losses.
Let’s talk about what you can expect—change probably won’t happen until late 2021.
president biden will likely use his Executive Powers to begin restoring president Obama's regulations.
so, the upcoming winners most probably are:
keep in mind...
Of course, the “devil is in the details” and, as what happened in 2009, we will have to see what percentage of federal handouts will actually go to inner-city projects, roads, etc. rather than propping up cities and states’ pensions.
2. COVID-19 Updates
Very shortly, we should have another Coronavirus relief bill. You will want to be invested when it passes.
Should there be more pressure to close down parts of the United States due to COVID-19, this will really help out the Tech Sector just as great as it did in 2020, and put more downward pressure on energy, food and leisure.
3. Geopolitical Updates
Expect President Biden to join the Paris Climate Accord (again, more downward pressure on the US Energy Sector) and the Trans-Pacific Partnership (which may put pressure on China to open trade).
Given Mr. Biden’s openness to China, we will see where this goes. But for large and medium companies that benefit from global trade, this could be good news.
what to keep an eye on in china
We are watching your accounts and portfolios meticulously. We plan to closely scrutinize changes in the political landscape and find ways to take advantage of opportunities. You should expect volatility and, although there is short-term pain in values decreasing, these also signal opportunity.
Call us anytime at 925-314-8503 or email me directly at [email protected]