“We will make America strong again. We will make America proud again. We will make America safe again. And we will make America great again.” – Donald Trump

Donald Trump’s campaign to be the 45th president of the United States of America was built on the core premise that he would do what it takes to “make America great again.”

To convince voters that he would indeed make America great once more, Trump made a series of promises during his long presidential campaign. Some of the more notable commitments include banning all Muslims from entering the USA, building a wall along the Mexico border, and dismantling the Dodd-Frank Act that was signed into law in 2010 following the 2008 – 2009 global financial crisis that originated from the inadequate regulation of the US financial sector.

Additionally, it is worth noting that the Trump camp did not initiate this campaign slogan. It originated with Ronald Reagan during his 1980 presidential campaign. However, Trump had an attorney register the slogan, and he requested exclusive rights to use the slogan for political purposes on 12 November 2012. It was finally registered as a service mark on 14 July 2015. The most pertinent point here is that Trump later denied that he knew about the Reagan connection to the original slogan. The reason why this fact is important is that Trump’s ever-changing rhetoric seems to be a symbol of both his campaign and, consequently his role as one of the most powerful men in the world.

The Dodd-Frank Act

What is the Dodd-Frank Act, and is undoing it an important part of improving the financial and economic conditions within the USA?

In summary, the Dodd-Frank Wall Street Reform and Consumer Protection Act was signed into federal law as a response to the 2008 financial crisis by the then US President Barack Obama in 2010. In essence, it is a massive work of financial reform legislation which is intended to “decrease various risks in the U.S. financial system.” The Act allows for the establishment of a number of new government agencies to oversee the implementation of the different components of the bill and by extension the American banking system.

As part of his campaign promises, President Donald Trump pledged to repeal the Dodd-Frank Act; however, once in power, he signed an executive order on 3 February 2017 to start a review of the Dodd-Frank Act and its role in the regulation of the financial sector. He did not revoke any parts of the act.

Furthermore, this executive order contains what the Trump administration has termed “Core Principles” to govern and regulate the financial industry. Finally, the order states that the Treasury Secretary must consult with the members of the Financial Stability Oversight Council to determine whether the statutes contained within the Dodd-Frank Act support his core principles.

Financial Reform: The impact on the financial industry and the economy

By way of answering the question of whether repealing the overly punitive parts of the Dodd-Frank Act will substantially improve the financial and economic conditions in the USA, the Act’s supporters accept that parts of the law can be adjusted to simplify it as well as remove the elements which contain excessive financial regulations. However, a continuing theme throughout any discussions about the Dodd-Frank Act is the worry that by changing the stringent parts of the act, the advantage of the law will be negated.

A financial guru from Sterns Options is of the opinion that “while there is no doubt that the revoking of the punitive financial and banking regulations means that the banks will be able to grow their business and increase their transactional profits, the financial industry still needs to tread with caution to ensure that a repeat of the 2008 financial crisis does not occur.”

Additionally, Michael Barr, University of Michigan Law School professor and a principal architect of the Dodd-Frank Act is of the opinion that revoking the Dodd-Frank Act would jeopardize the interests of the American middle class, investors, and retirees. He believes that Dodd-Frank put in place practical guardrails to prevent the 2008 financial crisis from reoccurring.

Final Thoughts
Will the repealing or modification of the Dodd-Frank Act allow the American financial industry, and by extension the USA economy to grow again? In the short term, yes, I believe it will; however, what impact will it have on the global financial markets if the USA descends into another financial crisis because there is very little regulation of the financial industry?

Will the repealing or modification of the Dodd-Frank Act allow the American financial industry, and by extension the USA economy to grow again? In the short term, yes, I believe it will; however, what impact will it have on the global financial markets if the USA descends into another financial crisis because there is very little regulation of the financial industry?

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At some point in life, a lot of us consider the idea of managing our own investment portfolios. In some cases that might mean keeping an eye on some retirement funds and making the occasional, long-term decision. In others it might mean something more akin to day trading, making day-to-day choices in the hopes of turning investments into supplemental income. Or you might fall somewhere in the middle.

There is something empowering about handling your own investments, and in the right situation it can be rewarding—both personally and financially. But handling an investment portfolio is also complicated and demanding work, and it’s important to make sure that you’re prepared for the job. To help with that, here are some crucial questions to ask yourself if this is something that’s on your mind.

Do You Have Any Market Education?

This sounds like a very obvious question to ask yourself, but plenty of people dive into the stock market based on financial understanding they got from practical experience, or even from television. For instance, ABC’s hit venture capitalism reality show Shark Tank has gotten a lot of viewers to feel financially savvy. The show can actually teach some lessons about business, but doesn’t really carry any information particularly relevant to ordinary investing. Try to do an honest inventory of your own sources for investing knowledge and, if necessary, read a few books and strategic guides specifically aimed at independent traders.

Are You Devoted To Any Companies?

This is a more common problem than you might imagine. If you’re preparing to set up an investment portfolio and you know that you’re particularly devoted to a few companies, you might want to set those aside for the time being until you develop some sound strategies. For instance, if you adore Apple products you might be more forgiving if the stock should slide, or you might assume it’s a stronger investment than it is at a given time. If you love Nike, you might ignore a favorable pattern indicating that you should buy Adidas. The idea is to assess your own preferences to make sure they won’t dictate your financial decisions.

What Are Your Own Relevant Tendencies?

This is a broad question but it can be narrowed down as an attempt to understand your own trading personality. This might mean figuring out what kind of availability you’ll have to manage your portfolio to determine what sort of investment makes the most sense for you. It may also mean trying to assess how risky or risk-averse you naturally are and important decisions accordingly. You should take some time to recognize your own habits as they will relate to this new initiative, and adjust as necessary.

Does Each Investment Fit Into A Plan?

It’s important to recognize that investing is not about picking a bunch of great investments (though you probably wouldn’t mind doing so). It’s more about looking at a group of investments engineered to move you toward achieving your financial goals. A good portfolio has two key features: diverse assets (spread across various industries so that what happens to one won’t necessarily happen to another) and a unified goal (meaning short- or long-term gains). As you organize your investments, it’s important to ask yourself if each idea fits into a greater plan for the whole portfolio.

Can You Get Out?

Perhaps the most important question for anyone on the cusp of an investing decision is whether he or she will be able to withdraw funds when necessary. That might mean choosing the right time to gather profits on a successful stock, or when to cut losses on an asset in decline. The discipline to pull money out when needed is as important as anything else when it comes to the process.

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3 Tried and True Methods of Losing Money Trading Stocks

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Yes, the title is something of a joke. An investor like yourself surely doesn’t want to lose money at stock trading. What follows are three common behaviors that, time and time again, blow up in the faces of investors, at many different experience levels. Even if you’ve been investing for a while with some success, […]

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