The financial media is full of prognostications about what the Trump presidency will mean for markets. Bonds swooned and stocks soared after the election with both markets pricing in the near certainty of fiscal stimulus and the return of inflation. Will this really happen? Nobody knows. The markets may have made big bets on the direction of the new administration, but they depend on which Donald Trump shows up for work on January 21, 2017.
There will be a steep learning curve and plenty of conflicts even though all three branches of the government are in one party's hands for the first time since the first two years of the Obama presidency. Remember, President Obama not only controlled the House and the Senate, but briefly held a filibuster-proof, 60-seat supermajority in the Senate.
Sharp divisions in the Democratic Party resulted in a watered-down version of health care that was nothing…