I am 61 and hold most of my assets in my 401k in various mutual funds most of which have done quite well under Obama. In fact, all of them have done well since he took office. Now that the election is over, the question to the group is simple. Should we all dump our stocks, hold cash and wait to see how this turns out? The reason I say this is that if you take him at his word and you fully grasp what Ryan really wants to do in Congress, you must admit that foundational pillars of the economy are about to be directly challenged. For instance: 1. Trade war or disruption with China and Mexico. 2. Massive tax cuts for the rich and business interests. 3. Deregulation of Wall Street implying they can restart the very same practices that gave us 2008. 4. Threats to military and political alliances such as NATO, Japan, Korea. 5. Military build up, massive increases in funding for war and the machinery of war. 6. Potential land, air and sea war with the Middle East. 7. Revocation of the Iran Nuclear agreement forcing them back to the centrifuges. 8. Inevitable stand off with Iran using military power as the bluff, Iran calls the bluff. 9. SS goes private. 10. Medicare goes private. 11. Deficits explode. 12. FED raises interest rates in anticipation of inflation and unpredictable fiscal policy. 13. Potential massive civil unrest as Trump passes his immigration laws and starts building the wall. 14. Political backlash in Europe forcing them to diminish reliance upon America for defense, economics and trading. 15. Potential massive unrest if Trump does not do what he said, this coming from his supporters. This is but a few very possible results of this election. So far the markets have not reacted because I believe everyone is still in shock. But as the inauguration nears, markets will do something. As the first year of his administration passes and Congress sends him bill after bill forcing the ultra-conservative agenda down his throat and all of us, expect chaos. This is why I am about to liquidate everything I own and hold cash or gold stocks. Whether you agree with my points or not, you must accept the fact that he won based upon these precepts.
