We felt politics would be a large driver of volatility in 2019, especially as both parties prepared for 2020. Our concerns around budgets, deficits, growing debt, and the debt ceiling were reinforced last night as the President committed to ‘outspend’ other nations and did not address deficits or debt at any point in his speech.

Trump seemed to learn from Powell that backtracking can lead to less volatility and possibly greater acceptance. Maybe this came up at their dinner. Unity, accountability, and collaboration might be Trump’s ‘Powell Pause” moment. Please Tweet us to less volatility!

One thing is for sure, the word ‘DEFICIT’ is not going away anytime in the near future. Keep an eye on long rates and the shape of the curve.

Let’s talk – Smith Capital Investors