In every administration, investors want some form of consistency and stability in order to invest in a theme and let the companies do the work necessary to set in the business plans are followed and the results make money for shareholders. It is a simple request, but politicians have minds of their own and often times use the road least travelled than the easiest method to do anything or it seems that way. For the Trump administration, the President has caused reaction to his ideas and while he talks about a weave, it is a little hard to follow what the results he wants are.

In the past quarter, we saw the stock market fall and then come back to where it was and climb on the basis it was not as bad as it seemed to be. Many families have different meals a week and one of them is TACO Tuesday or whatever day. The families are actually eating food.

On Wall Street, where everyone has an opinion, President Trump’s emphasis on immigration has played out to TACO trade or the expectation that Trump always chickens out or TACO. It maybe true, has been true, but will it be true in the future?

In an article by John Rapley of Reuters, the sentiment that President Trump is all talk, no action. The reason is while people may agree with the end result, how you get there is up for discussion. If billions were spent on the existing global trade system, what will be the result in 90 days? how much of a change will happen or even could happen? if you think about construction of a new home in a suburb – it will need sewer and roads or infrastructure, it will be a framework then the electrical and plumbing to be put in, and eventually the house will ready for someone to buy it and move in to become a home. There is a process, can it be speeded up? a little bit but it still takes time.

The problem with the TACO trade is it reinforces the notion the administration has got itself into a dangerous place.

In a normal administration, the last 2 years are essentially a lame duck president, because the President cannot run again and other people begin the process of running for the top job and they have to have a slightly different approach than the current holder.

President Trump has imposed July 9 as the day for all the tariffs to be signed and sealed. Will the President either offer an extension or stick to his guns and reimpose tariffs? The last time, the bond market did not like the results of liberation day.

The second deadline is the US will hit the debt ceiling by the end of July. With the debt ceiling be increased? will the Trump signature bill which increases debt be passed? what will the bond market do? President Trump want lower interest rates and has been fighting with the Federal Reserve chief over it, but will the bond market force higher interest rates?

Linking to dividend paying stocks, in all industries, there are some acronyms that work for a time and have truth in them, but they are meant to be guidelines. One can easily say Buy and Hold. If the company is profitable and can reinvest and also pay dividends, the acronym makes wonderful sense, but if it is not profitable, you might be holding for a long time before you breakeven. Use the acronyms as guidelines, not absolutes.

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