In mid December, President elect Trump similar to most people when showed the costs of the F-35s concluded the costs are out of control! Unlike most people, when President elect Trump says it, the stock market listens and the stock price goes down. Bloomberg News reported in an article titled Trump attacks F-35s, deals blow to defence. In the era of national security and personal security, the defence department and related departments often get what it seemingly a free ride in their cost controls. The reality is the plane rather than just flying has to or is asked to have an increasingly number of variables which in turn make the planes more expensive. It is similar to the old story of people being blindfolded and touch an elephant – they all come to different conclusions and expect their conclusions to be correct and incorporated into the solution. In this case the elephant is the Republican Party and when they scream national security, there is a cost to it.

The Bloomberg News reported it seems President elect Trump is willing to attack the big US companies, although after he attacked Carrier, the company ended up with a reduced workforce and a $ 7 million dollar state grant. It could be the companies will have to roll with the punches to end up with more money in their pockets. The government is one of the great stability anchors in the economy for it pays the bills, however when President elect attack the big pharma companies, the stock went down on the slim possibility the price of drugs (or the patents will be reduced) would fall.

Bloomberg reported the costs of the F-35s has fallen but is still a sizable $379 billion cost. for Lockheed the F-35s account for 20% of sales and it needs sales to partners of the US for greater profitability. 600 additional airplanes have been preordered by Britian, Australia, Japan and Italy.

Linking to dividend paying stocks, although things may change and that is a possibility, when the President attacks companies or departments it is generally for a very good reason. The stock market will have to adapt to President elect Trump’s style does he attack in public and in private make deals that allows companies to continue on their normal style? We will find out shortly and in the meantime look out for President elect’s bad side.

There are more questions than answers, till the next time – to raising questions.