How did your investments do this week?
There was a lot of talk of Trumpcare this week. On Thursday, Trump made the decision to delay the vote and issued an ultimatum to the House Republicans to pass the bill.
Republican leaders were optimistic Friday morning to pass the bill. But as the day wore on, their last-minute effort to gather the votes needed to pass the House looked bleak. Rather than take the bill to the floor, Trump decided to pull the bill.
Republicans had seven years to plan and repeal Obamacare. At a conference from the Oval Office Trump said House Republicans were 10 to 15 votes shy of getting the bill passed and blamed the defeat on Democrats. “We had no Democratic support,” Trump said from the Oval Office. “They weren’t going to give us a single vote.”
A single Democratic vote wasn’t needed to pass the bill.
There is currently 237 Republicans in the House of the 435 members. A simple majority (218 out of 435) is needed to pass the bill to the Senate. When doing the math, 237 Republicans – 218 votes needed = 19 Republicans would have voted against it.
Trump went on to say, “We have to let Obamacare go its way for a little while and we’ll see how things go. I’d love it to do well, but it can’t. I mean it can’t. It’s not a question of ‘Gee, I hope it does well.’ I would love it to do well. I want great health care for the people of this nation, but it can’t do well. It’s imploding and soon will explode. And it’s not going to be pretty.”
The market reaction to the Trumpcare failure was relatively modest. The market was trending down until the news hit of Trump pulling the bill.
S&P and the Russell 2000
The S&P closed -1.4% lower this week. This move down lowered the market’s performance YTD to 4.7%.
After last week’s gains in the Russell 2000, this week took a turn for the worse. When the markets saw its worst day of the year on Tuesday, the small-cap index was the worst performer losing 2.7% that day. For the year, the Russell 2000 is now down to -0.18%.
This is my weekly post of my balanced, buy-and-hold investing strategy of leveraged ETFs. For the week, my account was down -0.1%, lowering my YTD total to +9.5%. Although the overall market was down, this week’s flat performance in my portfolio is attributed to my allocation in TMF.
Video of the Week
Below is a video in honor of national puppy day on Thursday. ☺ They’re not your typical puppies. They’re bred and trained to be soldiers.
Thanks for reading. As always, if you want to know more, let me know in the comments or Facebook.
Disclosure: Performance data is as of the date of this posting. The views expressed on this site are personal opinions only and should not be construed as financial advice.