I think it takes a long time for politician’s policies to affect the economy. And policies that do affect the economy short term are usually like a kid eating sugar… might make them feel good for a few minutes, but makes them sick long term. Social security / Medicare made everyone feel good when it came out, but will harm our country eventually. Trump’s tax cuts made some people richer in the short term, but they greatly increased our debt which is going to have to be repaid by my kids one day. It’s the same thing as going to get a payday loan every week… you can buy more toys now, but you will be poorer for many years in the future. I think we need very low taxes, and very low spending. But you can’t have very high spending and very low taxes… that’s like working at McDonald’s and buying a Mercedes on your credit card. It just doesn’t work.
The stock market is not the economy. It’s a hype machine where big traders push certain stories in the media to make everyone fearful or greedy, and the big traders buy when everyone reads scary articles and sells their stock for too low prices, and then sell when everyone gets greedy and reads articles about stock going straight up. Billions are made from gullible retail traders every year this way.
Avoid being burned by the game by not watching the news on TV and carefully selecting sources for data. Only buy and sell based on actual economic data. Here are some of my data sources I watch for the macro economy (for micro economy, I look at actual stock by stock revenue, profits, etc):