The markets are churning within tight ranges unable to break up or down, as there is so much good happening in the world that is being neutralized by politics in DC. I put the blame squarely on Trump and the inability of our politicians to act like adults. We are right there on the verge of a potential breakout with economic growth accelerating above 3%; corporate profits expanding over 10%; and stock markets rising to major new highs coupled with a steepening yield curve. However, we are stuck in a quagmire in DC with negative media sound bites all the time.

Our markets should be even higher today based on existing levels of corporate profits and interest rates. The push-me, pull-me markets are caught between strong global fundamentals on one hand and offset by a lack of confidence in our political system on the other hand. Stalemate in DC is no longer positive for the markets, as we need action to get us out of the economic quagmire that we have been in for years.

The foolishness is that everyone knows we need to:

Overhaul/update the tax system and bring it into the 21st century

Reduce excessive regulations that have stifled business and job creation

Rebuild/modernize the infrastructure that is outdated/falling apart to make us more productive and competitive

Strengthen our national defenses while rebuilding the status of America in the world

Reform our healthcare system to provide better services at lower costs for all Americans

Change our immigration policy making our borders safe while promoting domestic growth

Improve/upgrade our education system and provide job training for the new economy

Be energy independent

Improve our trade imbalances by promoting fair trade

Do you find any of the items listed above controversial? It’s in our politicians’ hands to act and unleash our economy to reach its true potential only if…

How can you sell a market when:

The global economy is improving including the U.S.

Corporate profits are accelerating

Interest rates remain ridiculously low and monetary authorities everywhere are apt to remain one step behind for the foreseeable future

The dollar is firm

Regulations including Dodd Frank are being reduced that will help stimulate growth

The stock market is undervalued based on today’s profits and interest rates

Relations with China are on the upswing…note our recent trade deal with them and also their efforts to promote trade amongst their neighbors!

China is dealing with its own financial issues including too much leverage and speculation. It has the reserves to handle the problem while investing to sustain growth above 6.5%. Don’t bet against China!

OPEC is holding together and oil prices remain above $45/barrel

M & A activity remains strong as well as corporate restructurings

U.S. relations are improving with Europe, the Middle East and Asia

South Korea may even be willing to open talks with North Korea after its recent election

We are on the cusp of so many really good things happening led by a pro-business, pro-growth President. Besides all of the items mentioned above, I want to emphasize that corporations continue to change their stripes right in front of our eyes recognizing that technological upgrades and competitive strategies are requirements to be successful in the “new” economy. Disruptors are having a huge impact everywhere thanks to major technological advancement being made. Just look at the retail space, which I have been discussing for three years and you will get what I mean. The box stores are a dying breed. Who doesn’t shop on Amazon?

The bottom line is that the stock market is undervalued even today and there are so many things on the horizon that can occur to take the markets to major new highs. Patience is needed and will be rewarded as change is clearly in the air. Reflation remains the new over-riding trend.

Every stock in our portfolio has multiple ways to win. We only own best-in-class with great management teams with the foresight to adapt to the “new” economy and win. Paix et Prospérité continues to outperform the averages by sticking to our disciplines. Truthfully I have rarely seen so much opportunity to profit from either side of the market than today only if…

Review all the facts; pause, reflect and consider mindset shifts; analyze your asset composition and risk controls; do in-depth independent research and ..

Invest Accordingly!

When I was in my early 20s, I made my first investment in a mutual fund. I was working part time and took one paycheck and invested it in 20th Century Growth Fund (now called American Century Growth). The fund had a solid track record, and importantly to me, no minimum investment. I added to my investment over time, and the fund performed very well.

But the point is it got me started with mutual fund investing. Like many things in life, it’s important to get started. Not next year, not next month, not next week, not tomorrow, but now. Investing is governed by the laws of compounding, and the sooner you start, the sooner the high part of the exponential curve can kick in.

In the early 1980s, I made $2,000 annual contributions to my IRA. I contributed $8,000 in total (and then I stopped so I could use funds to start Morningstar). Today, more than 30 years later, that $8,000 account is worth a considerable sum—bolstered by rising equity markets and tax-free compounding. One great way to get started with investing is through a 401(k) or IRA account. Not only will you reap important tax advantages that will significantly add to your investment return, but you’ll also be less tempted to take the money out.

Since the financial downturn of 2008-2009, many people—especially young people in their 20s and 30s—have avoided equities and kept their funds in cash or fixed-income securities. This isn’t a great way to build wealth. The markets were up 16% in 2012 and 32% in 2013, and those on the sidelines missed the run-up.

Equity mutual funds had net outflows over the past five years. Then, last July, the tide turned and assets started coming back to equities. For 2013, equity funds had net inflows of $218 billion, a trend that has continued so far this year.

The longer you wait to build your investment portfolio, the harder the task of meeting your goal. Most wealth—be it in an investment portfolio or in building a business—is created over long time frames by stringing together many years of positive returns.

By waiting too long to save and invest, many people fall into a trap of overreaching for returns to make up for lost time. They fall prey to get-rich-quick schemes, the latest investment fads, or drifting into high-risk areas without sufficient knowledge. They end up with capital losses that are difficult to overcome. As one smart money manager I know likes to say, “You don’t have to worry too much about making money as long as you don’t lose money.” Starting early with appropriate expectations will help your odds of avoiding permanent capital losses.

Here are 10 funds I like that have a minimum investment below $2,500. I’ve also noted the Morningstar Analyst Rating for each, which is our analysts’ assessment of the likelihood that these funds will perform well over the long run:

Ariel Investor (Bronze) Artisan Mid Cap Value (Silver) Baron Growth (Bronze) Dodge & Cox Stock (Gold) Fidelity Small Cap Discovery (Gold) Mairs & Power Growth (Silver) Matthews Pacific Tiger Investor (Gold) Primecap Odyssey Stock (Gold) Royce Special Equity (Gold) T. Rowe Price Mid-Cap Value (Gold)

You can also get started by investing directly into stocks. Right now the aggregate price-to-fair value for the 1,600 stocks we cover at Morningstar is 1.06. That means the market is fairly valued—not undervalued, not overvalued. If you have a long time horizon, you should be fine with investing in equities now. Ten companies I like that our stock analysts also rate highly are:

Baxter International ($76.11) Berkshire Hathaway ($128.58) Coca-Cola FEMSA ($116.00) Clorox ($90.91) Coach ($34.32) ConocoPhillips ($84.53) CSX ($31.14) Deere ($87.64) McCormick ($70.27) POSCO ($74.03)

(Stock prices as of market close on July 21, 2014.)

Our lives are shaped by our habits. Developing the habit of investing will shape your life in a positive way. You’ll be a step closer to financial independence and the security and pride that come with it. For me, it was always important to be independent. It gives you freedom to do whatever you want—no matter what anyone else says. So take a paycheck—or part of a paycheck—and get started.