Market Bets On Democrats' Magic Wands—Why You Should Be Skeptical

Unrealistic Expectations Please click here for an enlarged chart of State Street Health Care Select Sector SPDR ETF (NYSE: XLV ). Note the following: As a reminder, we are politically agnostic. The momo crowd is now betting Democrats have magical powers to fix healthcare, housing, and everyday living expenses. Here are the realities investors should not overlook: Unlike periods when one party controlled the White House and both chambers of Congress, this time Democrats do not have a free run. President Trump is still the president, and the Constitution gives him veto power. Neither party has a magic wand to make massive federal deficits and the national debt disappear. The momo crowd may soon discover that political promises are much easier to make than to deliver. At this time, it is especially important for prudent investors to separate their politics from their investing. The chart...