We have had a great bullish market since October. Many people say the new presidency is part of the bullish market. I also agree that this is true but I also believe we are due for some correction ahead. President Trump will have his inauguration on January 20, 2017. I expect this to get a lot of fanfare as well as many dissidents that would rather oust him from the presidency. Either way, I feel a correction coming to the market.
You cannot have a bull market run forever. When the pigs fly is when they get slaughtered. I see an interest rate dip and market correct coming at the end of January.
What is the best way to play this?
If you see some stocks that you are interested in, I recommend waiting until the end of January. Once you see the dip, then you can get into the stocks you want. I would not recommend buying now where many stocks are at peak highs. I also would recommend you try to get in the previous dividend stocks that I recommended.
In the long-term, I hope the President Trump does make changes that can help the economy. This is the main reason he was voted into office. There were many unemployed citizens that are looking for work. He also suggested ways to bring companies monies back into the USA. These are all things that should spur the economy and bring more jobs. It’s a lot more challenging that I believe and he has a lot to juggle.
I know the government has stated that they will raise interest rates three times in 2017. I highly doubt this will happen. The economy is still in the doldrums and it will take time to get the economy going again. With these concerns, I still believe Bank of America (BAC) will be a good long-term play. The market will give you some nice dips to purchase BAC and I expect end of January will be an opportune time.