"If the nothingness continues to exist in the House and Senate, President Trump is going to have to learn to work with Democratic majorities the last two years of this first term."
Oh no! Are we here already? Has the "Trump Bump" started to flop? And whose fault is it if that does happen? Hint - not the President's. It is the fault of the the gang who would love to be in power - and when they are - nothing happens. Again, this has nothing to do with Donald Trump. He has been steadfast in his beliefs and true to his campaign promises. No, this has everything to do with Congress, which is now more like the "gang who can't shoot straight".
I fear what we are going to see for the rest of the spring is the federal example of "what goes up must come down." Everyone who has taken Investing 101 knows the premise of the market. It is built on expectations. Earnings are good for sure, but the market soothsayers are always trying to peek over the horizon to see if those earnings will continue, or if that company has reached the end of its rainbow.
It is no secret what has fueled the "Trump Bump" once the election was over. Hold the phone and pass the potatoes! Yes, that is correct! We finally have a Republican (businessman no less) President, a Republican House (with a nice majority), and a Republican Senate (with a slim majority). Now we can get rid of that train wreck called ObamaCare, FINALLY fix our out of date and weaponized tax code, and then undo a bunch of those Obama job killing regulations. Oh yes, one more thing. Fix that pesky debt ceiling issue this month.
So how are we doing? Ah, we are in nowheresville. Nothing got done in Congress. The President did fix a bunch of things with executive orders. But besides for that, the only accomplishment of this Congress had no far was getting Judge Gorsuch into the Supreme Court. And the Senate rules had to change to get that done. Other than that, the House of Representatives might as well hit the Washington links every day.
After all that work that Congress did not do, they are on a well deserved two week hiatus. In know, I know. In the real world if you worked for a firm and did nothing, and then asked for two weeks off, your boss would tell you to take much more than two weeks - like forever.
They better hit the ground running when they return. They better have consensus on what to do with raising the debt ceiling, a true fix (one that Trump can proudly sign) for ObamaCare, and a dazzling new tax package. If they do not, and we end up with more mumble jumble, watch for the markets to head south faster than Minnesota snowbirds in January.
One more thing. If the nothingness continues to exist in the House and Senate, President Trump is going to have to learn to work with Democratic majorities the last two years of this first term. Right now, the Republicans hold their future in their hands. Soon it will be out of their hands. And if that happens, shame, shame on them.