Yes. After some time in the woods of Healthy, Wealthy, and Wise, we're back to what we know best and where we believe we can add value. Not that health and wisdom don't deserve attention, but they deserve more than we can give them.
We're also reminded of the phrase "stick to your knitting." Focus on what you know and don't get distracted by wandering from your area of expertise. That's from the 17th-century Dutch proverb, "Shoemaker, stick to your last." These days the term is used to encourage people to stick with their core strengths rather than delve into areas where they might lack expertise.
So, back to our core strengths.
We've been intentionally quiet for a while as the election results unfold. From an economic and investment standpoint, the likelihood of a recession seems to be building.
The nine-point template below is offered as a model for this part of an economic cycle. The points are roughly sequential. Yet there are always overlaps and some things are more dramatically presented by politicians and in the media than they need to be.
Also- and this is essential- avoid conflating opinions (which are unproven beliefs) with facts (which are verified knowns). Especially don't conflate strongly held beliefs (like democracy is coming to an end) with what's known (institutions are amazingly resilient). Doing so is a recipe for frustration, poor decisions, and disappointing results.
We'll start with our basic opinion (belief). It's that the U.S. is in the late stage of an economic expansion. That would have been true even if Harris had been elected. But it won't become a fact (known) until we all see it in the rear view mirror. This list builds on that opinion.
1. Asset Values Decline. There are three major assets- real estate, stocks, and bonds.* This point is first on the list because markets "price in" future expectations every day. Markets are forward looking. They tend to ignore the daily news unless it changes future expectations. That said, not all declines are forebearers of recessions, but all recessions have been preceded by asset declines.
2. Demand for Goods and Services Slows Down. For whatever reasons, consumers pare back their spending. This is important because consumers create about 70% of economic value. Major companies like Wal-Mart, Target, and Delta Airlines have recently guided analysts lower regarding their year-ahead expectations. That handwriting on the wall is getting priced in.