Trump Markets
Understadning the next 4 years undertrump.
Bonds
Following the 47th presedent elect Donald Trump’s victory Tuesday the largest single day increases of bond yields in years occurred. The 3-month, 5-year, and 10-year all saw +4% increase in yields. There are two stories to unpack here. Little demand. Yields rise as demand falls. Yields rise to become more attractive as investors become more confident in riskier investments (stocks). This means people putting money into the market. The second side is the concern for Inflation. DT is running on a tarriff policy. As a Economics Major tarriff prices are usually seen by the prodecuers and the consumers. The yield increase could be a responds to the idea of higher prices for consuers.
Manufacturing
American Automanufacturing companies are up. $TSLA $GM $F. The big story is tarriffs. What really will they do. Are they everything trump claims they will be. Foreign Auto manufacuring such as BMW, Mercedes Benz, Porche, and Volzwagon all went down. Remeber prices are baked in. Institutions with billions behind them are placing there bets on what they think will happen.
Energy
Reulations will be cut. Oil and Natural Gas Stocks soared Wednesday. I think this is one of the safer plays for the next 4 years. Trump has a track record of cutting regulations and letting American companies drill and frack. He has not had a policy shift on this. The new idea is Nuclear which he has hinted at across various interviews. The last year has been a historic bull run for nuclear. Can Trump carry this momentum?
CRYPTO
Invest. Nothing else needs to be said. Crypto will be up for the next 2 month minimum then expect a correction. I think 100K will be close to the celling until it dies down for another run.
Gold
Price of gold droped. Increase in power of dollar. Gold represents uncertainty in investors. Fallng prices means money is flowing into markets.
RFK Jr.
If they let this guy near the white house. The “Big” three’s pockets will hurt. Agriculture, Food, and Pharma. What is is proposing a a radical shift in our Health system. The chnages he makes will show up in the profits of huge coperations.
It has been a week since elections and markets have been a playground for money. When in doubt put your money in the S&P 500.
