American businesses and consumers have demonstrated an ability to adjust to changes in administrations and policies. However, in order to do that, some clarity is important. Obviously, it is difficult, if not impossible, to formulate strategies in a universe of rapidly moving targets.
Understanding what the rules are is essential for investors when making decisions regarding the long-term allocation of capital. Economic growth is generally believed to be fueled by investments. Major investments have a multi-year time horizon, and decisions depend on a degree of predictability.
Individuals also need some policy continuity for a variety of long-term decisions, including tax, retirement and portfolio planning.
All comments and suggestions are welcome.
Walter J. Kirchberger, CFA
