Dividends and Trump tweets, markets move. What to do?

In the past, communication from the President was very measured, calculated and expected to result in actions. With President Trump who likes to tweet or communicate, it seems not an expected result has been calculated into his tweets. However they can and do move markets because this is the President of the US deciding what his policies should be. It is very hard to keep up to the President because he seems to be all over the map.

In an article by Dale Jackson he discusses what investors should do when the President tweets, particularly about economic issues. Art Hogan, managing director and chief market strategist at B Riley FBR Inc. says You have an administration that wants to pound its chest in the beginning and hopefully get to a middle ground in the end a sort of art of the deal.

You have to look past Mr. Trump apparent contradictions. The President has trust issues because he tends to tweet things that are not correct.

The solution focus on long-term corporate earnings growth and stay diversified.

Another approach is offered by David Baskin who says since very little gets put into action try to treat the President as just another market distraction. It is very difficult to do this but understand what the truth is and if the President says something else carry on.

Linking to dividend paying stocks, no matter how much the President tweets the reality is profitable companies are worth more than non profitable companies. If President Trump was not President he would be another investor hyping his latest claim and then moving on to the next hot thing. It is easier to invest your money into profitable companies and let them figure out how to capitalize on the next greatest thing since slice bread. Usually time will sort out the consistent good things.

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

 

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