Mike Lipper’s Monday Morning Musings
Are We Refighting the American Revolution?
Editors: Frank Harrison 1997-2018, Hylton Phillips-Page 2018
People Unhappy with Both Major Parties
We act like very young children who protest when denied some
little thing. Children, feeling denial is a retraction of parental or family
love, then act out to express their hurt and confusion. These little children
have matured into us, who express our hurt and confusion by communicating our perceived
problems to the identified powers that be, political parties. We are no
different than the brave people who came to a new land to fulfill their needs, feeling
disappointed with the powerful people in the “old world” who withheld some old
benefits they perceived they had.
The Issues Faced by American Settlers Are the Same We Face
Today
Unhappy people have existed in many countries since recorded
time, trying new government approaches to solve their unhappiness. Ancient
Greece, Rome, and various city-states tried different approaches, but none lasted
long.
The American Experiment
We were remarkably lucky that some of our leaders attended European
Colleges or were readers of history. They knew of past failures to create governments
that had hoped to produce long-term happy people. Unlike earlier attempts,
leadership in the thirteen colonies were of different religions and
backgrounds. Under British rule all mail had to go to England before it was delivered
next door or to other colonies. Consequently, there was not a singular American
thought pattern. This is why it took American leaders over twelve years from
the Declaration of Independence to develop the US Constitution, and more importantly
the Bill of Rights.
What Made the US Different is Not Totally Accepted by All Today
While we recognize the presence of the majority, our
Constitution recognizes the existence of the minority, or multiple minorities who
require their rights to be protected so they cannot be eliminated. The
Constitution assumes and to some degree applauds a change in leadership, which increases
the probability that legislation will be both a product of the majority and
minority points of view. It is up to Congress to pass legislation. The Supreme Court
and lower Courts determine if legislation is authorized under existing law and
the Constitution. The President is elected to preside over the government, not
function as an all-powerful commanding executive.
What Are Signs of Unhappiness?
For the last couple of weeks more stocks were sold at
declining prices than bought at higher prices. (Investors only accept lower
prices when they are displeased with their holdings.) In the current week, 70%
of New York Stock Exchange (NYSE) listed stocks declined vs 60% of NASDAQ
stocks. In the latest weekly sample survey of the American Association of
Individual Investors (AAII), 53.3% were bearish for the next six months vs just
28.8% bullish. Using the average year-to-date investment performance of mutual
fund sectors, Commodity funds were +26.78%, World Equity funds +13.26%, and US
Diversified Equity funds +11.00%. (Clearly showing domestic inflation has investors
worried.)
Both US Courts and many Foreign Governments are unhappy with
the current administration. We will see this coming week if attendance at the
United Nations meeting in New York is lower than expected. Also, this week, Chairman
Xi meets with President Trump. Will that change other countries’ attitudes
toward the US?
What are Your Thoughts?
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