President-elect Donald Trump may not mean the end of the world as we know it. Some investments are poised to soar while others slump as a result of this election. And one market in particular gives you a surefire way to earn potential profits either way: Currencies! Here’s our Forex expert Boris Schlossberg to tell you what to expect next. Best wishes, Mike
Well the world came to an end for exactly three hours once it became evident that Donald Trump would be elected.
The Dow collapsed for 600 points. USD/JPY dropped nearly 400 pips off the day’s highs, and gold soared. But then something unexpected happened. Mr. Trump made his acceptance speech and the Darth Vader tone of the campaign trail was suddenly gone.
Mr. Trump stopped threatening to put Ms. Clinton in jail and, in fact, was gracious in victory. He reached out to all the Americans who voted against him and he sounded Presidential.
The markets stopped selling and started buying as traders realized that Mr. Trump may not be the threat they feared. In fact, Mr. Trump promised to “make America great again” by investing and rebuilding infrastructure.
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| How long can President-elect Donald Trump behave so Presidential? |
One of the most fascinating aspects of Mr. Trump’s remarkable run is that it is not ideologically monolithic. By running a highly populist campaign, Mr. Trump’s natural economic policies could focus on helping workers and business owners.
Don’t be surprised if Mr. Trump actually gets behind the hike in the Federal minimum wage, which would be his single biggest political accomplishment for his base and which would also allow him to reach across the aisle to work with the Democrats.
The one asset that is almost certain to suffer will be bonds. Deficit spending will likely raise long-term rates to double their current 2% yield.
| If Mr. Trump gets distracted with social issues and ignores the economic populism of his campaign, the markets will suffer a double whammy. |
If Mr. Trump gets distracted with social issues and ignores the economic populism of his campaign, the markets will suffer a double whammy: Foreign capital will flee U.S. assets as the fractured U.S. society nears a political Civil War. Economic growth will come to a standstill as investors lose all confidence in future demand.
What will be the first warning sign? If Mr. Trump appoints a special prosecutor to investigate Ms. Clinton. So far he has been coy on the issue refusing to fully rule out the possibility … but not emphasizing it as well. But until that happens, markets will continue to favor risk-on assets.
Happy Trading,
Boris
{ 38 comments }
He specializes in doing the impossible. Haven’t you heard ? His common sense approach will succeed. In fact, I am willing to bet that Donald Trump will be voted a second term.
Hi. Boris How much are your forex trade services cost ?
Trump has promised to “drain the swamp” and H.C. is seen as an alligator in the swamp. The bigger question is how can Trump discipline H.C. and her staff with law and order with out dragging the current pres. into it? What about L.L in the department of justice? And what about the FBI director and his enraged staff? It looks to me that it has all gone way too far to pivot and retreat. We are in it now and it’s is going to be hell to pay for those who actually broke the law.
Drain the swamp is needed. The Clinton’s head band is larger than their waist.
Agree. You must show that we still have the rule of law here. I think the people that voted for him want this.
Boris: I am very worried about the debt that we can never repay. No one talked about beginning the process of bringing the Federal government in compliance with the constitution! We have a blue print for reducing the size of government. President Reagan appointed J.P Grace to head the Grace commission. The Grace commission conducted the most extensive audit in modern history! In the last book that he wrote before he died, the late J Peter Grace forcefully argued that if all those suggestions were implemented, we could have saved 450 billion dollars over a five year period! We cannot prevent the next financial crisis, but we can mitigate it. The stock market is over valued and it needs to correct. Regards, Robert Calabro.
If he frees Chelsea Manning and jails Hillary Clinton, my hopes for him will have been fulfilled.
You guys need to stop this and focus on the problems at hand. Europe is imploding and needs a solution. Some Countries in Europe have half of the population waiting for something to happen so they can go to work. If nothing comes along than the war cycle will hit and they will all have jobs in the armed forces. Why do we care? Because some of our companies used to do over 50% of their business in Europe. Wars are not the answer. War is too expensive in terms of money and human life needed for production and services to grow the GDP. We need to have a plan for the future and make it happen.
Hillary Rotten needs to be prosecuted and incarcerated. She is a master criminal.
The US Presidency has significant checks and balances that will curtail Mr Trumps ambitions ? I think you will see a few high profile gimmicks that MR Trump will point to as delivering on his promises>Mexico Wall, emigrant deportation and defeating ISIS will be his mission>After that it will be Congress and Senate that will decide on US policy and if it matches his statements he will claim credit if not he will claim that he was prevented from delivering his promises>
He will of course surround himself with worker bees and thinkers and like all CEOs will leave it up to his Teams to team,dream and deliver.
Not sure it will make much difference to the ordinary man who elected him,but he will message to convince his supporters that he is delivering >
Prosecuting Killary would be a mistake. No matter what I think about this Vermin. People didn’t vote for Trump to prosecute Killary. We don’t need this kind of distraction.
Why would you not get a special prosecutor to investigate Hillary? Is she any different than any other citizen? It is time to show that Hillary & the ordinary citizen should be disciplined for their failure to follow the law. Without discipline you have no law. BILL
Hi Boris
All the accusations from the left media about the acceptance by both candidates of the result is playing out now. Some students are marching in the streets while some in Hollywood are asking their supporters to fight. If Mr Trump behaved like this with a loss he would have been driven out of town by the media. This very ugly campaign cannot be washed away with some meaningless platitudes. How both sides now work together will be important for the good of our people as a whole. However if we want to live in a peaceful democracy, then this ugliness must be dealt with from both sides. As a nation we are swimming in debt and we can either paddle with the tide of change or sink in a mess of our own making.
I doubt a special prosecutor will be required once the current AG is sent packing and the DoJ can do its job and lets the FBI do its. A lot of people are going to jail. Shrillary will probably get a pardon before 20 January.
The implication that a new administration cannot walk and chew gum at the same time is just silly.
The only warning sign I am concerned about will be obstruction by Congress and the unholy alliance between Democrats and ball-less RINOs.
Obstruction? Payback is Hell. Remember it takes 60 votes in the Senate since the Repubs instituted the filibuster everything rule.
DT never revealed his tax returns because such information would indicate how often he screwed his investors, shareholders, and lenders at least SIX times because of his failed business decisions. He called his actions “brilliant” because he profited, “used the bankruptcy laws to make deals better”, and didn’t really give a damn about who lost. He said he knew more about the Federal tax code than anyone because he also used the same and probably more losses to avoid paying income taxes. It’s called NOL (Net Operating Loss) and any tax accountant or ordinary citizen with a brain can use it if they properly fill out the forms…legal, commonly used, and no brilliance is needed. Populist? What about the contractors who also got screwed?
Any increase in the Federal minimum wage is nickels and dimes for average workers. Big deal. It won’t help them buy a house, or pay for an education and medical costs that are rising at exponential rates.
DT has a God complex and the attention span of a gnat. He said he would ignore most of the intelligence and other information he will have to deal with as Commander in Chief. Putin and all the other authoritarian oligarchs will play him like a fiddle and watch him twitch like a PUPPET.
DT’s talk during the campaign was disgusting; supremacist bigots think like that about other races and faiths; rapists think like that about women. Yet now he will be in the Oval Office, replacing a statesman of dignity. The “Presidential” part is just the sound of Mr T kissing the herd of millions of undereducated and uninformed asses that voted for him….the ones like him who didn’t bother to understand who or what they would be doing or voting for. Let the media do that for them. It’s all just talk and hype so far. If T wants my respect he will have to earn it.
This is how the Nazi regime got started. Now they are revived in you own country and will get to install their politician cronies in the Cabinet and Supreme Court, and play, practice, and bully the world with the military and economic powers the U.S. has remaining. You and your offspring will still pay the tab. They will have the keys to the self-driving car that will crash and burn and take the country down with it. Everyone should be suddenly happy because T decided to play nice only because he won?
The repeat lesson of Bush v Gore has still not been learned. Your popular vote matters, but only 56% of you bothered. There’s the problem.
Frank
I voted for DT because we cannot go forward without change and budget repair. Some out of work’s want to march, break windows and promote violence. This on veterans day. We may all look at things differently, however I wish the new administration well and I am excited for our country’s future.
On the money: really, your comment is a breath of fresh air.
Trump’s personal flaws — extreme narcissism, psychopathy, lack of depth or expertise in any field except perhaps tax evasion — are only too obvious. The only encouraging sign so far is his willingness to throw Chris Christie under the bus. Let’s hope Giuliani and Gingrich are next.
Hey Frank!
Aren’t we testy today? What this election showed was why the electoral college was a stroke of brilliance. On its face Forrest Gore and Hillary lost because they couldn’t convince enough sheep to go along with their big government ideas. [Note: Had all absentee ballots been counted (most were not) Gore and Clinton would not have been close in popular vote. Absentee ballots aren’t counted unless their number exceeds the margin of victory in the popular vote]. The Electoral College keeps the country from being run by just the large population centers. Look at the map on where votes came from and you will see. In the meantime get over it. YOU LOST!
I don’t think Mr Trump’s change of tone toward Hillary had a lick to do with the market. Obama’s 35% corporate tax sent our corporations overseas to compete on the world stage, Trump will reduce it to 15%. Obama’s thousands of regulations were killing small businesses. He just about killed the coal industry & stopped our oil industry & spend billions funding solar disasters. His obsession with global warming was costing us billions daily. when 31, 478 scientists agree global warming is a hoax. google it! Everything Obama did was anti business and Hillary had plans to further his agenda. As far as Hilary is concerned there isn’t a more corrupt person on this planet. Benghazi, Her email server let foreign enemies into our governments most secure agenda. It gave enemy snipers exact locations of our undercover soldiers for many years. She collected billions for the Haitian earthquake victims & kept most of it. She promised upstate NY 200,000 jobs if they elected her. 8,000 jobs were lost instead. Years ago Qaddafi was giving us grief. Regan bombed his house & we hadn’t heard from him in 25 yrs. Hillary took him out & now ISIS is filling that void. Several secret service agents have written books in this vile woman & how horrific she treated the staff. Her name in the WH for 8 yrs was broomstick 1. Her pay for play foundation gives 6% to charity and collected billions from despot leaders all over the world in exchange for the come. She gave 20% of our uranium to Russia. She had plans to increase the 680,000 Muslims Obama brought here and continue to fund the 360 sanctuary cities while our veterans are committing suicide at an alarming rate. No …the only people crying for Hillary are the incredibly ignorant. Boris!
“make America great again†Please the campaign is over. Let lies lie and bring forth the truth. Quote Mr. Trump’s natural economic policies could focus on helping workers and business owners. unquote Please enough of this tripe. He has stiffed so many “workers” in his personal business life do you really think he cares a RAss about them. If you think this your dillusional. He is so close to the establishment in fact being a billionaire he is the establishment personified. Save this help the worker stuff for the sheeple. The poor Joe Blow who voted him and will come to regret this in the next four years as this vote getting carpetbagger packs up his rhetoric wares and returns to his true agenda making money for the rich. How obvious this is take the blinders off.
Right on sir .
The only person to break glass was Donald
THANK you for the fresh air Mr.Trump.
Ii am shure mr Trump will Do his Job as president .and keep his eyes on the sokmarkwt.he’s .doing what he likes being incontroll.I think were in Goodhands. Thak you IreneRamirez
MR TRUMP NEEDS TO CONVENSE MEXICO TO BECOME ANOTHER STATE IN THE US. REDUSE THE BORDER BY 90%. WE NEED THE LABOR. OUR KIDS DO NOT KNOW HOW TO DO MANUAL LABOR. WOULD YOU PERFER TO HAVE YOUR TRASH HAULED AWAY EACH WEEK OR A LAWYER WHO DOES NOT KNOW HOW TO CLOSE OUT A LAW SUIT.
What’s going on with Gold/Silver ?
You need to explain how prosecuting Mrs. Clinton of her crimes will harm the economy.
One would naturally think bringing the corrupt elite manipulators who abuse the power of their positions to justice would instill confidence in both foreign and domestic investors.
What you,re suggesting is the complete opposite.
You are right. Furthermore the crimes of the Clinton’s are worse than normal graft. By taking bribes from foreign powers the Clinton’s have compounded their guilt. When a politician uses their position to allow foreigners to get secret information or gives them other advantages, those acts are acts of treason. Acts of treason are not the same thing as Joe Blow politician putting his wife on the payroll or even collecting millions from XUZ solar panel company in Joe Blow’s hometown. Treasonous acts (like Bill Clinton giving the Chinese info about how to make submarines quieter and less detectable or Hillary ignoring an Ambassador’s 100 plus emails asking for protection) are in a different class of crime. To ignore treason by empowered persons can endanger the nation. That is probably more important than naking nice to the Democrats after their typical win-by-smearing campaign.
Trump is dumber than George W. Funny times ahead.
George W is reported to have a higher IQ than most Democratic politicians. From what I’ve seen the average Republican or Independent is smarter than most Democratic Politicians. Don’t confuse betrayal of trust in order to get ahead, with having intelligence. It’s more like not being honest.
Wrong.
Mr. Trump, like all presidents before him, values his place in history more than life itself, I bet. It’s an ego trip that billions can’t buy.
We have just witnessed the conclusion of Act I. DT’s “acceptance speech” was the opening of Act II.
More to come.
Boris – Re: your column of October 24, 2016, “Don’t ever become a Dilbert Trader”. I’ve invested like Dilbert, i.e., Scott Adams, and it’s worked out very well. How’s it working out for you?
Obama will pardon Hillary. That will but an end to that!
This is the reason we elect representatives. Your entitled to your opinion and are guaranteed the right to voice it. Blowing “steam here” without writing your Congressman (him/her) in my mind is not productive. Writing your Congressman instead of complaining only about his/her position might do a lot more good. Taking action before an election is much more productive than complaining afterwards. Let your voice be heard ahead of time TOO!
It is my opinion that more people than “normal”, (the silent majority), this election cycle decided to participate. They expressed their views in this representative form of government by voting directly for TRUMP. It’s amazing to me how many people believe this government is a “Democratic” government. No PUN intended! …. We are a “REPRESENTATIVE REPUBLIC” …. if you can keep it! Just keep paying attention to developments. Trump does not take office till January 20, 2017. Until then he is only our next leader …… President Elect!
Having read both pro and con evaluations of the Trump victory, I feel quite content with the vote I cast for the winner. Thank you,
I am sorry, but I really don’t know what more you need me to say, except that I am a 90-year-old Republican CONSERVATIVE who is trying to support the GOP; some of whom have been disappointing in their lack of enthusiasm for our Party. As an Ohio voter, I must say Gov. Kasich will be sorry he embarrassed us and I hope he will repent before he needs us again!