I think about equities a fair bit these days. My nest-egg is tied up with them. The value of my currency is tied up with them. Even my politics is tied up with them.
Yesterday, revelations/admissions that Trumpists colluded with Russians to subvert the electoral process caused a little tweak in the Dow Jones Index within minutes of publication in New York. That’s just the tip of the iceberg. The Dow has been on a tear since the election of Trump based on the assumption that Trump in the White House will be good for investors. That’s not sustainable even if by some miracle Trump delivered all his promises. However, Trump has told so many lies and this most recent revelation almost makes it certain that Trump will be impeached sooner or later. At the moment, a majority of Congress would probably agree to impeachment, 100% of Democrats and 50% of Republicans should be enough. All it takes is a little push to start the sticky snowball rolling.
So, I’m sitting here, heavily invested in gold, watching the Canadian currency rise against the US dollar, hoping the fall of Trump doesn’t actually break anything, just makes a major correction. We should know when the indictments flow with articles of impeachment. Trump has been repeating the lies that there was no collusion, no obstruction of justice and no Russian connection. He’s repeated those lies so many times, there’s no alternative facts to retrieve his position. With no credibility and Congress passing veto-proof legislation all he can do is arrange another firing of investigators which will trigger impeachment.
Besides the politics, Trump has actually done much to harm the US economy in the long run. Anchoring USA back to oil and coal could prevent uptake of renewable energy which is the way all the competition is going. That will make USA less competitive within a few years. Certainly, not implementing universal healthcare will tie an anchor to the neck of the US economy for a decade or more. You just can’t have people in their most productive years avoiding healthcare when it has a chance to prevent illness/disease/loss of workdays. Will the best and brightest continue to migrate to USA when they know they will be persecuted as “others” and bankrupted by illness? Trumpism is killing the goose that laid the golden eggs.
The good days roll. Surely money that has been flowing into the US economy will be diverted somewhat to Canada and we will trade with the rest of the world while USA slips further into a quagmire of messy politics, restrictions on trade, self-inflicted sanctions, still no universal healthcare and a government of lies run by the liar in chief.