The saying goes that if you want to live like a Republican vote like a Democrat. The reason is quite simple if you are not already among the nation’s wealthiest one percent. When in power Republicans push money up to the super rich that spend a much smaller percentage of their income than the average Joe. Plus they also stuff large chunks of their gains in offshore banks. The net effect is to kill off domestic product demand that strangles the economy and jobs, causing markets to crash.
The opposite happens when Democrats are in power. They push money down to the middle class that spends most of it. Thus product demand goes up and the economy and jobs boom and everyone’s stock portfolio soars.
Well, it’s too late to vote now. The Republican are back in charge and markets will soon be heading down. In addition there is another old saying, never fight the FED. This means that when the FED is lowering interest rates buy stocks and when it is rising rates sell stocks. The Fed has just commenced a raising cycle. Thus your 401k stocks will be getting hit from two directions
Yes, my friends, investing really is just that simple. Get out now! The party is over. The Hooverites are about to stick it to Main Street — again.