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What a difference a week or two makes!

What a difference a week or two makes! The end of the year decline is well documented as one of the worse end-of-year periods in history. Now, two weeks later, the recovery has also been historical. Where does that leave us?
First, the US economy is still strong though it is weakening. I have been saying since last summer, tariffs are not good for the economy. The economy is the world economy. Tariffs, and government shutdown take money out of the economy. This creates a trickle-down effect. Little by little the money the consumer has to spend is reduced and will eventually lead to a recession if not ceased. This does not have to happen!
As for the market, it is reasonably inexpensive right now. It is not cheap by historic measures but is far from expensive by historic standards. The Fed has shown its maturity, by indicating that it is flexible on rates. Let’s hope the White House, and House of Representatives follow that lead. We will see.
Enjoy the day…r2