Disruption and chaos

 It is hard to keep up with anything.  I wake up with a feeling of exhaustion. I do not read the news. Even though it is only February, it feels like this year has been 5 years already. Disruption and chaos seem to be part of our daily routine.  While all this is happening, markets continue to be overall, pretty sanguine.  Until they are not. We experienced some of that not so sanguinity on Monday this week after tariffs were promised on our biggest trading partners and neighbors as well as China.  Market averages sold off Monday morning but recovered as deals were announced with first Mexico and then later Canada.  Apparently, the agreement included steps that both Mexico and Canada had already previously agreed to.  Was this an exercise because President Trump could, do it? 

 Canadians are now booing when NBA and NHL games take place in Canada and our National Anthem is played.  Disruption and thinking out of the box are a necessary exercise to seek change and improve.  It is the chaos part and scale of disruption with the inevitable unplanned consequences that are pretty scary.  I am waiting to see if my social security check is deposited this month!!!  What happened to separation of powers and what did the first 3 weeks of the new administration say about the 1-month deferral of tariffs, and passing a spending bill in March, not to mention all the other functions of government.  We do have to remember that permanent change requires legislation because the next executive can reverse all the previous executive orders.  That has happened with each change of administration.  The so-called mandate of this administration was not a mandate considering the country is split 50/50 still and the majority in Congress is the narrowest in 100 years. 

Currently the 3rd branch of government is coming into play with rulings in regard to the attempted halt to government funding, birthright citizenship and other lawsuits filed.  The impact of all of this on financial planning needs to be considered as planning decisions are made, especially, as far as taxes are concerned with the expiration of the TCJA that was passed in 2017.  However, buying a car manufactured outside of the USA before tariffs are a risk is low on the list of priorities. If you need to make a large purchase such as a car then make the purchase. Tariffs should not be the variable to determine that purchase.  The same framework that normally we use in large purchases should not change. We need to focus on the decisions we can control and be prudent, thoughtful and intentional.