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Report card of 2017 Investment Strategy






Sudden uncertainty at the end of 2016 due to President-Elect Trump made me go on the defense so I chose a very safe portfolio. The portfolio contained only 4 recommendations & after including the dividends the gain is close to 18.5 %. My portfolio narrowly beat SP 500 index! 2017 was a spectacular year for US markets. Every sector had positive returns.

President Trump

Stock market rallied 20 % and closed at historic highs. Was it a fluke, magic or exaggeration? Neither! Markets can be irrational but there is a good reason for a strong bull market. It is turning out that our current POTUS is the best thing that happened to US in a very long time. White house has made tremendous gains in every front right as promised during campaign. It has been less than a year since POTUS took oath. Some highlights:
- Stock markets gained close to 20 % in single year & closed at record highs
- Credited with elimination of ISIS from Syria & Northern Iraq
- Cut funding for UN operations. US contributes close to 25 % of total UN’s overall budget. UN is a 193 nation club and therefore US tax payer is unfairly punished
- Pressure on NATO allies to boost defense spending. In the 28 member coalition - US contributes more than 25 % of spending!
- GDP grew 3 % per quarter since winter of 2017
- Unemployment down historically at 4 %
- Tax reform bill passed which lowers corporate rates & provides a tax cut to more than 80 % of US tax filers
- Obamacare “individual mandate” is removed which reduces billions of dollars that US government pays in subsidies
- Close to 2 million jobs created
- Consumer confidence is highest in close to 20 years
- Women getting priority in small business loans
- Tons of regulations cut by executive orders. It saves billions of $$ for US government
- Withdrawal from Paris climate agreement. It posed unfair environmental regulations on US companies
- Loosened regulations on coal and oil industry & reduced time infrastructure approvals
- Exit from TPP. It was one of the most unfair trade deals for US
- Re-negotiation of NAFTA. Mexico was benefiting the most from it while US workers were punished
- No. of companies like Toyota, Mazda, Ford and Broadcomm have announced to open plants in US
- More land being made available in Gulf of Mexico for drilling and most likely progress to be made in Artic
- Obama’s clean power plan killed
- EPA re-thinking regulations on methane emissions
- Massive increase in deportation of illegal immigrants. It leads to reduction in abuse by under paying illegals and encourages wage increase for US workers. There is more transparency & fairness
- 40 % reduction in criminal gang members compared to 2016. 800 MS-13 gang members arrested

These are some reasons why market rallied so much in 2017.

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