Since the Election........

[deserteagle71]

An economy, at its most basic level, needs confidence that money put out will bring a return on that investment.

It's amazing what simple economic confidence will do. It's a metric that can't be quantified or qualified. It's a feeling. It's hard to explain to simple minds, but its there and needed.

^This!
And I've noticed that since the election everyone I've talked to has a much more positive outlook on the direction the country will be heading in, as well as their own well-being.

 

[ultrarunner]

^This!
And I've noticed that since the election everyone I've talked to has a much more positive outlook on the direction the country will be heading in, as well as their own well-being.

It's mostly the opposite here... everything from folks calling in sick to agencies across much of California now focused on how to minimize all impact of the election.

Much talk about loss of Federal funding that was expected to bail out things from transit districts to city budget shortfalls.

Many are going one step farther saying why do we need Federal Dollars when California pays the Fed more than it receives?

I do believe things are about to become very interesting and soon on a variety of topics...

I would be happy if I could again use my Echo Brush Cutter without fear of reprisal...

 

[jk96]

As a business owner I believe that elections do influence investment decisions, which in turn effects the economy. It also depends on your line of business as well. Someone that services government contracts would react diffetently than someone who is in retail.

Me personally I try to find the silver lining in any situation in order to capitalize on it. Stocking up with multiple years of inventory for example if I see higher prices coming. That puts me at an advantage to my competitors or increases my margins when I'm raising prices and selling inventory at last years cost. For the most part I'm planning at least 2 or 3 years ahead though so a single election doesn't have as imediate impact as you're describing.

Going back to the silver lining I mentioned. Due to the nature of my business I have been able to raise prices over the last few years to maintain my same standard of living with minimal effect on my business. On the plus side after adjusting for inflation my business and home loans have gotten cheaper. A $250k home loan doesn't seem like near as much when a new 1 ton diesel costs $95k.

 

[quicksandfarmer]

On the plus side after adjusting for inflation my business and home loans have gotten cheaper.

If you have debt, inflation is great for you. John Maynard Keynes called inflation "the euthanasia of the bond-holder."

 

[ultrarunner]

Remember when Reagan took office? I was pretty young, but it was like a black cloud had been lifted.
We were living on garden vegetables, “no frills” food and waiting in gas lines. Interest rates & inflation were sky high.
After Reagan was sworn in, everything seemed to improve.

It feels like we are in a similar situation.

I remember a profound attitude shift in that Americas best days are ahead… he also had quite a following in California as former governor.

 

[2manyrocks]

He had conviction that free markets work best, that unchecked government imperils freedom, and his reforms established the basis on which much of the prosperity since the 1980s is based, at least until recently when so much of it was squandered and put into jeopardy.

 

[Tinhack]

economic confidence

You took the words right out of my mouth. The economy is booming around here. More and more houses going up. And they aren't in the low-end market. Businesses that closed up during the pandemic are reopening now. You can see it in people's faces when traversing the isles in stores. Better times are ahead.

 

[not2old]

In MY specific area, construction is dead. You walk outside during the day-no nail guns, no saws, lumber yards are ghost towns. Few additions, garages, or decks being built. Few “XYZ Construction” signs at the ends of driveways here in “coastal” PA.
“no money moving” around here. Hope it changes soon.

Construction is booming here. Hard to get any trades without a wait. What you need there is a good wildfire to get the economy moving.(LOL)

 

[square1]

In before the lock...
At the lake we have two neighbors that are contractors. One is a GC, the other does new kitchens, no remodels.
I can count the times each of them have made in person visits to their properties at the lake over the past 2 summers on one hand. The times I have seen and talked to them over those summers they "complain" that are slammed with work.

 

[Hay Dude]

You took the words right out of my mouth. The economy is booming around here. More and more houses going up. And they aren't in the low-end market. Businesses that closed up during the pandemic are reopening now. You can see it in people's faces when traversing the isles in stores. Better times are ahead.

Our real estate prices are soaring higher, but there’s little to no construction. Its a lack of willingness to sell (holding onto low rate mortgages) and little desire to borrow against home for 7% HELOC to add major home improvements.

I think this is all interest rate driven. Maybe 7% mortgages seem low to the 60+ crowd, I can tell you right now the 25-50 year old crowd don’t think that’s low. They’d much rather purchase/improve homes mortgages of 5% or less and many are sitting on the fence until those rates return.