A TIME TO VOTE
While we probably should not, we are going to do it anyway – here are our predictions and thoughts about the near future as we look in our murky crystal ball.
Winner of the Presidential Election:
While last presidential election proved to all – “don’t bet against President Trump”, we anticipate a Mr. Biden win. It feels like the “silent majority” will vote in favor of Mr. Biden this time around – and we do not think it will be a contestable victory.
Policy by Tweet:
Not only will we have a “golden aged” President; but the song’s words of “Silence is Golden” may prove to be a welcome change for all. Policy will be less likely to be announced via daily tweets.
Democrat Control of the Senate:
What had seemed highly improbable even a few months ago now seems to have at least a 50% chance of happening. Our crystal ball sheds no light on this topic; however, it would be no surprise if the Democrats wrest control from the Republicans.
We believe the tax rate for corporations and individuals will be changed and not lower. The composition of the Senate will greatly influence the degree of the tax rate changes.
Additional Stimulus Money:
We believe there will be at least one more round of stimulus money to come out of Washington. The next stimulus plan may not get passed until after the election, however, we believe it is coming.
The Federal Reserve will be very reluctant to increase interest rates until at least the following has occurred:
1. A viable vaccine is widely available
2. Economic growth, as measured by Gross Domestic Product, GDP, is above 2.5%
A tidbit of fact:
From 1947 – 2006, the average return for stocks – measured by the S&P 500 – when a Democrat sat in the White House was 10.5%, for a Republican president during the same years it is 6.1%.
The Sun Will Come Out Tomorrow:
Regardless of your political persuasion, the sun will indeed rise each day.
Thank you for the opportunity to work with you – We hope you and your family are healthy and safe.