Sometimes you can can avoid trouble by changing course, other times trouble is baked in the cake already and you just have to understand that trouble is coming and prepare as best you can.
"So the Democrats may keep the Senate though barely. The Republicans will likely take the House but also with only a thin majority. That means that U.S. policies, internally but especially on foreign issues, will not change one bit.
As the saying goes: 'If elections would change anything they would not be allowed.'
We are all in an environment now where most of the problems we're all facing like inflation, supply shortages and wild fluctuation in consumer demand are already manifest and no tweaking we can do by voting in (or out) specific politicians (administrators) will solve them; nothing less than structural reform will do. That's a nice sounding word which in real terms means suffering since changing anything structurally involves pain, perseverance and time. Lots of time.
Have you ever considered why they call economic excess a "bubble"? Think about what a bubble actually is for a minute like a balloon for example: It's an object which appears large to the eye but only has its substance on the thin, film-like surface. Everything inside of it which makes it appear large is only air so when it bursts and the air dissipates, the only substance left behind is the much smaller, rumpled, deflated surface.
This is a perfect analogy of where we are right now - All the balance sheet "assets" of massive corporations (including the Federal reserve itself) are empty valuations which, like the air in the balloon leveraged by the wafer thin real assets on the surface will just disappear - suddenly - while the precious few real assets left will be ravaged by the mob looking to recover their losses.
most of you reading this have never experienced a time of raging inflation and supply shortages since it has been 40+ years since the last time we had to deal with it, your (old) humble writer was still a young man with ambition then lol!
The accumulated excess of the last few decades will be reconciled one way or the other - since I don't believe any true reform can be achieved they way we're set up right now, my expectation is for natural market forces to reassert themselves meaning that things which have real value will shine and things that have manufactured value will disappear.
The "valuations" on peoples' balance sheets will be brutally readjusted to their actual value: zero.
We are only now starting to see the droplets of what I expect to become a downpour of consequences from decades of printing money-from-nothing, mismanagement & corruption, mal-investment and doing more of hurts us to help us like printing more money to fight inflation.
"It's not just tech giants and Wall Street firms any more. As FreightWaves reports, truck brokerage giant C.H. Robinson Worldwide Inc. is laying off between 1,000 and 1,200 employees, most of whom are at the vice president and general manager level, according to sources familiar with the situation. The move, as FreightWaves CEO Craig Fuller reports, "might be the largest layoff in the history of freight brokerages, not related to a bankruptcy or acquisition."
You will hear many opinions that would suggest we can avoid our appointment with fate. Ignore them:
"It doesn’t have to be this way, though. There’s still a chance the Fed can successfully bring down inflation without significant harm to the economy — a “soft landing,” in both economist and pilot speak. Fed chair Jay Powell even said so last week: there’s a small chance, but there’s still a chance. And frankly, markets are starting to believe him, especially after an encouraging inflation report."
Now that the elections are over my expectation is that the headwinds we're all experiencing now will become convulsions in the marketplace. Many owners have stories of incredible obstacles to their normal operations whether it's shipping, sourcing parts or finding personnel and that will probably increase IMHO.
Government agencies are no longer neutral players; they are enforcing policies which directly benefit large companies and hurt small ones like, for example, the new ESG rules which affect not only publicly traded companies but also their (non public) vendors. Yes, really. Imagine having a nice contract with a large, publicly traded company like General Mills selling them bags for their flour and suddenly losing the contract because you cannot justify your carbon footprint?
"the U.S. Department of the Treasury (DoJ), whose designated role is to “maintain a strong economy,” has established a new Racial Equity committee, and its new vice chair, Felicia Wong, vowed to make “racial equity central to the Treasury Department’s mission.”
This is happening every day. Now It's going to get much worse. If you enjoyed the last three years the next two are gonna be a ball!
The good new is these changes will bring huge opportunity - no fear! Call me if I can fund an opportunity for you.