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December 18, 2016 | Real Hope and Change?

Rick Ackerman

Rick Ackerman is the editor of Rick’s Picks, an online service geared to traders of stocks, options, index futures and commodities. His detailed trading strategies have appeared since the early 1990s in Black Box Forecasts, a newsletter he founded that originally was geared to professional option traders. Barron’s once labeled him an “intrepid trader” in a headline that alluded to his key role in solving a notorious pill-tampering case. He received a $200,000 reward when a conviction resulted, and the story was retold on TV’s FBI: The Untold Story. His professional background includes 12 years as a market maker in the pits of the Pacific Coast Exchange, three as an investigator with renowned San Francisco private eye Hal Lipset, seven as a reporter and newspaper editor, three as a columnist for the Sunday San Francisco Examiner, and two decades as a contributor to publications ranging from Barron’s to The Antiquarian Bookman to Fleet Street Letter and Utne Reader.

If traders should awaken on January 3 in an inexplicably downbeat mood, the new year could begin with a thud.  It wouldn’t be the first time a jubilant December gave way to a sullen January. Whatever happens, there’s no reason to think the stock market will weaken significantly between now and December 30, the final trading day of 2016. Moreover, as the chart I’ve included with the latest DJIA tout makes clear (see below), there is good reason to believe that the strong buying we’ve seen since November will continue. Much of it is surely attributable to the prospect of a deregulated business environment and lower taxes that President-elect Trump has promised. There will be doubts about whether these changes will suffice to overcome the drag of an economy that has been mired in 2% growth for the last decade. But if the hope and change that Obama campaigned on turned out to be a bust, the prospect of constructive change seems real enough already, given Trump’s activist cabinet appointments and his determination to do away with Obamacare, the biggest tax increase ever levied on the middle class. Regardless, many Americans appears braced for the worst. If they are wrong, will they acknowledge it by becoming part of the solution? That would be something of a miracle. Who knows what the economy is capable of with everyone pulling together?

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December 18th, 2016

Posted In: Rick's Picks

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