Dunaway talks with Jill Schlesinger, from Jill on Money – CFP® CBS News Business Analyst – about how the GOP’s healthcare defeat impacts the Trump economic agenda.
Since the failure of the Republicans to pass healthcare, stocks are down 2 ½%, since the recent high on March 1st.
“I was looking back on my notes from an interview with a big investor after the election,” says Schlesinger, “and he’s telling me what’s going to move markets…that we’re going to get tax reform, infrastructure spending…and there’s going to be a loosening of the administrating…but I had nothing in my notes about healthcare.”
Schlesinger thinks the reason for this is because, “everyone assumed it was going to get done,” explaining, “everyone thought there would be a longer term process…a repeal and replace.” Now says, Schlesinger, the chatter is, “if they can’t do healthcare, which was supposed to be the easy thing, what happens next?”
“But that wasn’t the easy thing,” says Dunaway, “as you know, it’s 1/6 of the economy, so you just don’t get that done in four weeks.”
“I think most people looking at an investment – it was a sugar high – you think, I want to eat this, and then you get a little crazy. I don’t want to go crazy,” says Schlesinger.
“If you are an individual investor, and saving for retirement or funding your IRA because it’s tax season, you should be routing for a correction. Don’t you want to buy stocks 10% lower than what they are right now?”
“Yes,” says Duanway, “provided they go back up 10%.”
“I’m not saying they’re going to go directly back up, but long term that strategy will serve you well.”
Schlesinger has more on this topic up on her blog. Go to JillonMoney.com to check it out.