What Does “Dynamic” Mean?

We are seeing some of that “dynamic” period already.  Lame duck President Biden has already made the headlines on a number of occasions as he pardons criminals, including his own son, commutes death-row criminals to lifetime sentences, changes the terms of employment for Federal employees to prevent President Trump from taking actions to reduce their numbers, attempting to sell the materials intended for the building of a wall along the Mexican border, and more.

President Trump will no doubt make every effort to reverse the consequences of Biden’s vindictive actions.Between the actions of the outgoing President and incoming President, issues are certainly likely to result that only the Supreme Court can resolve.  Its decisions in favor of either side will certainly set precedents that will affect the future legal, political, and economic environment in the U.S.

Regardless of anyone’s personal support for either President, the road to resolving those issues will have its share of bumps – another way of saying that 2025 will be a dynamic year.

2025’s Dynamic Economy

The Democrats, with President Biden leading the way, have been pursuing a political environment (i.e., regulations and Congressional legislation) that favors moving towards a more socialist orientation.

Republicans, with President Trump leading the way, are intent on pursuing a political environment (again, via regulations and Congressional legislation) that favors freedom and capitalism.  

By “capitalism” is meant that you have the freedom to take any actions you deem proper in the pursuit of your own happiness; i.e., to profit from your efforts, with a business, service, etc., with government limited to preserving your freedom, not only from the government, but from criminal acts.

The political support behind those issues will affect your success at investing.  Will stocks as a whole do well, or will political events reduce their value?

As Goes January …

It has often been noted that the stock market’s performance during January is generally considered a harbinger of how stocks will do for the year.

This January, however, includes the departure of a lame-duck President and the swearing-in of a new President, on January 20th.  

President Trump can be expected to get off to a very dynamic start.

Just how those first actions by the new President are received in the stock market should be indicative of the President’s subsequent actions and the subsequent stock-market reactions for 2025, and into 2026.

Consider those actions when choosing your stock portfolio for 2025.  Will “dynamic” be considered a good or bad adjective a year from now?

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