Sunday, November 27, 2016

What Trump Means For Investors

Things may not be as bad as they seem. Here's why:

There's 7 things that you should have on your radar if you plan to make some money instead of pontificating on what "should" or "shouldn't" happen. Most people "should" all over themselves. It's counterproductive. Don't do it.

I'm fully aware that the US is due a recession but ...

1. If Trump can pull off the corporate tax cuts (35% down to 15%) this makes the US competitive with places such as Singapore and Hong Kong. Capital will flow back into the US. Dollar goes up and so do equities (not all, though).

2. Protectionism will drive inflation. Dollar goes up.

3. Infrastructure spending ($1 trillion) is inflationary, positive for equities, and scary (very scary) for credit markets.

4. Futures markets are pricing a December Fed hike at over 90%. If so, dollar goes up.

5. Nothing Trump does is going to alter the massive global forces of debt overhang. And guess what currency this debt is priced in ... [dollars.]

6. The Zeitgeist is changing. Fast. Italy on the 4th December. Lega Nord here we come.

7. Speaking of the 4th of December: Just like their scooter-driving neighbours to the South, it's the day Austria vote in "The Freedom party". You heard it here. All of this is EU negative and since it's EU negative it's euro negative, ergo dollar positive. It's the law of negatives. Two negatives make a positive.

You can read the rest @

So, in spite of the lies the MSM have been telling us, Trump may be great for investors.

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