POLITICAL EFFECTS ON THE ECONOMY

[pubic_assistance]

I have a quick question for you guys.

When discussing financial planning / investing etc...it's really almost impossible to avoid discussing political policy.

I am trying to not cross a line into "discussing politics" by not getting opinionated about the politics of a policy...just discussing that the policy exists. 

But is the mere mention of current government policy making too much ?

I'm not clear where they line is to be drawn.  Can we discuss the topic of policy if it is directly related to finance ?

[Kevin Slater]

Did you mean to post this in Ask a Moderator?

[BeamerBikes]

If this sell-off keeps up leading to a harder slowdown, I think the politics discussions will get much easier because even the die hard folks are going to be saying “Shut up Stewart!” 
 

When lots of folks start facing wide-spread hardship across the political spectrum, the culture wars and personality cults will fade into the background.  Least that’s my hope. 

[Kevin Slater]

Tariffs exist.  Tax policy is under change.  The stock market is distressed.  Taking those as a given and discussing how to invest accordingly should be fine.  Ascribing political motivation is not. 

Kevin Slater

[pubic_assistance]

3 hours ago, Kevin Slater said:

Did you mean to post this in Ask a Moderator?

Yes. But i seem to have failed 😕

[TonyDown]

I've gone down a rabbit hole this morning reading about the American economy and economic theory.

The most interesting read was about Hyman Minsky and his economic theories, including momentum investors vs. value investors. 

Momentum investors cause irrational high and low points of cycles.  The majority of investors are momentum investors. 

Policymakers and regulators use counter-cyclical policies for banks, taking care not to upset the fragility of financial markets, for example the exaggerated cycles caused by momentum investors across all markets.

That said, I recall Peter Lynch emphasized not using politics as a stock market investment guide, knowing the long term trajectory of stocks has been upward through various political eras.  It's fair to say he was a value investor.

Listening to the financial pundits, does anyone else sense the experts don't know where we're headed, other than most but not all of them are worried?

I'll head back down the rabbit hole to search for anything on tariffs and economic theory 

 

Edited April 5 by TonyDown