The Fear Factor

Dan Celia
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Posted: Feb 11, 2017 12:01 AM
The Fear Factor

Many in the public have been concerned lately about the markets and potential volatility heading downward. That isn’t surprising, given the state of advice dispensed by liberal investment advisors.

Right now, those living and working in very liberal geographic areas are constantly spreading doom, gloom and fear. They express their concerns about what President Donald Trump will do to the economy, reflecting their fears that a market crash is just around the corner.

Some believe it’s becoming difficult to predict the fear factor in the markets. I would like to point out that this fear factor is not even mildly comparable to the fear that most of us lived with during the past eight years. Since 2009, many on Main Street were afraid of a president who they didn’t believe cared a lick about the financial markets or the stock markets.

A President Who Cares

Today, there may be some justified fears that the markets will take a small dip or experience a correction. Still, the big difference now is that the majority of the American people can agree that we have a president who deeply cares about putting America first. He cares about creating jobs. He cares about the forgotten people, building the middle class and working with other countries to bring more industrial productivity to America.

What I call the “Donald Trump Fear Factor” is mostly caused by the ideological bent of those who fear him. I would submit that most of these people have a limited ability to look at economics from President Trump’s perspective. For that matter, their beliefs do not include the deep-rooted ideology that our president holds above all other things.

Indeed, the public’s enthusiasm for an American president who cares first and foremost about the nation, its economy and its peoples’ ability to make a living—and the opportunity to grow—will far outweigh any fears.

Pullback Possible

I’m not saying there isn’t a possibility we will see a pullback in the markets. I could argue that such a move is likely, even necessary, and will be healthier than some might think.

However, what will drive the future of the markets is not the fear of a pullback, but the optimism and security people will feel during this pullback. I would suggest that if we see a correction, it will be short-lived. I predict we will not see people running for the hills—not even mom-and-pop investors.

The enthusiasm that we’re seeing in the market is not just some sort of temporary phenomenon, but a growing belief that each and every day, as we see a president who is actually doing things and working hard to fulfill his campaign promises, that optimism will persist. After all, America is on the right track for the first time in many, many years.

An Optimistic Future

Even this week alone, we have seen a great deal of stability in the markets. This is particularly encouraging in the midst of a hawkish Federal Reserve. Interest rates are likely to go up in March, questions are looming about how real oil production cuts are, and energy stocks are declining, while a political battle is raging over immigration.

In my opinion, there’s nothing better than stability in the midst of what some might consider uncertainty or negativity. We can look at charts all day long about heightened fear in the markets; I’m certain there will be as many charts showing that people are less fearful. But there is one constant that is certain: this president is putting America first.

President Trump will be working extremely hard to give the average person the opportunity for security and prosperity. He will make sure that inner-city school systems are changing to bring education and training to future workers. He will work hard on behalf of the American people and on behalf of America, not for the benefit of satisfying the ideology of a particular class of people—or himself.

I remain optimistic about the future of the economy and of America. Those who don’t share my optimism must understand that the underlying fundamentals of the economy will once again be the driver of markets. And they are driving toward a brighter future.