January 9, 2025 | Premium Service | With the inauguration of President Donald Trump coming next week and stocks at all-time highs, we want to give our readers some thoughts on market position and asset selection for 2025. Obviously the big risk to the markets in 2025 is political. Morningstar understated the case in polite corporate language:
"The biggest question mark for markets and the economy in 2025 is undoubtedly the path for policy in Washington. President-elect Donald Trump campaigned on sweeping changes, including new tariffs, tax cuts, and deregulation, but it’s unclear how those promises will translate into action."
Markets have been lulled to sleep since November. President-elect Trump thinks that taking over control of the Panama Canal and/or bullying NATO ally Denmark to sell us Greenland is a good idea. This is not encouraging. When the Nazis occupied Denmark during WWII, American Coast Guard cutters and aviators defended Greenland. We used it as a base for protecting Allied convoys and the eventual invasion of Europe. Do you think Donald Trump knows this?
