How Would The Markets React To A Trump Victory?

Discussion in 'General Trading Discussion' started by longtermbull, Nov 7, 2016.

  1. longtermbull

    longtermbull Administrator Staff Member

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    While it is looking more and more like a Clinton victory is on the cards, how would the markets react if Trump managed to pull it off?
     
  2. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I think that if Trump manages to win, there will be a little short term volatility similar to what we saw with "brexit". I voted for him, but I doubt he will win - it is very difficult for a Republican to win the US electoral college.

    I think that longer term, we will probably be sideways at best over the next several years. And since we are perhaps a little overdue for a recession and an extended bear market, I'd wager that these things are quite likely during the next president's first term.

    Furthermore, since rates have been squashed for 8 years, and trillions have been pumped into the economy via printing and asset purchases, I think it's likely that the next recession and crash will be significant - maybe or perhaps not as bad as '08, or perhaps even worse.

    I'm not one of those people who buys an index fund or goes long-only on leverage on a handful of stocks and hopes and prays that the fed never raises rates again, and deludes myself into thinking that the markets will never tank again. I'm tactical, well-hedged, well-diversified, etc. I'll be looking forward to whatever the markets will bring, and will embrace whatever volatility they bring along with it.
     
  3. SteakTartare

    SteakTartare Senior Investor

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    It looks like Trump is going to win. Dow futures just took a plunge. I'd imagine the turbulence will be relatively short lived. Tomorrow will likely be interesting though.
     
    Last edited: Nov 9, 2016
  4. JR Ewing

    JR Ewing Super Moderator Staff Member

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    Yes, indeed - shocked the hell out of me! Lots of happy people in my neck of the woods.

    I watched most of the coverage on Fox Business, but I did flip around a bit to Fox, and later CNN, CNBC, and MSNBC to see the reactions of the leftists once a Trump victory appeared to be most likely. :D

    I was a little surprised that the talking heads on Fox Biz didn't seem to understand why the futures rose from -800 to -500, and eventually higher - shorting and eventual short covering for profit taking. :rolleyes:

    Looks like the markets adjusted and appear to like it today - I've got a big wad of cash that I was looking to spend some of on what I wrongly assumed would be a big selloff if he managed to win somehow - which he did. :D

    My biotech and energy holdings in particular are doing very well overall - as are the 2 private prison stocks I bought on that huge dip a couple of months ago - took some profits today!
     
  5. manoharb

    manoharb Senior Investor

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    Trump won and as Trump promised he will double Economic growth of US. This will get true soon. so Congrats to all Americans who supported Nationalism agenda against Terrorism agenda of Cold war. Markets are bullish from here. DowJones created long-term bullish pattern 2-3 months ago. Possible rally upto 20000-21000. FED rate hikes looking confirmed in next month. Now many good news are ahead for US. Dow still trading near 18500, right time to create longs for Long-term.
     
  6. manoharb

    manoharb Senior Investor

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    Sir, It was fake propoganda or Rumour spread by media . Dow created Long-term bullish pattern months ago and according to IMF rule of SDDS. Market must give justice to Technicals and winning of Trump wasn't bad news. but we all know how media distracts traders from true facts.
     
  7. JR Ewing

    JR Ewing Super Moderator Staff Member

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    I wasn't influenced by the media on this - I can think for myself, and my incorrect guess that the markets would sell off for a day or two was an educated guess based upon past experiences.

    I'm glad overall for the average investor that the markets didn't sell off for a day or two like many of us expected - but it doesn't matter to me personally... as far as I'm concerned, a good advanced investor should be able to make some money (and not lose too much money) in any market environment.

    Really easy to come online a day or 2 AFTER the election and say that you knew ahead of time that the markets would rise rather than fall short term on a Trump victory - where was the crystal ball before Tuesday night?... :rolleyes:
     
  8. manoharb

    manoharb Senior Investor

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    No sir, Dow Jones is bullish, I'm saying that from last 3months on my Twitter profile. 2 Months ago, I was tried to Log in to this board but there were some server problems so I failed to post that. after months, yesterday i tried to log in and successfully logged in on Bullmarketboard. I thought, I can't log in to Bullmarketboard ever again.
     
  9. manoharb

    manoharb Senior Investor

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    I am very very optimistic about 'Trump will be a next president of US'. sure, Americans will decide that. but, as a trader, I am expecting revolution in Global Economy and some good changes in US Economy, If Trump became next president.From Trump, I'm expecting many impressive business deals with global economies. :)
    maybe weird, but my inner sense or Sixth sense is also agree with that.

    This is my post on 27th. Feb. 2016 (BullMarketboard). You can consider it's my luck, my view was right. but everytime luck don't helps. In this view, I wrote about Good Business deals from Trump also. so now Trump is president of US. Let's check my skills, Trump also said, he made a great Economic Plan for US. Now my view about future, Trump will implement non-aligned policy. which will create revolution is European and Chinese markets ( Keep UK out of that ). For EU bigger challenges are ahead.
    Now Technical Scenario, overall Global markets are bullish until March 2017. after that, Anti-Russian sanctions is important factor. we will discuss about that after 10th. Jan 2017.
     
  10. longtermbull

    longtermbull Administrator Staff Member

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    For the first time ever the US has a president who has actually worked in the world of business, making his money before entering the Whitehouse as opposed to making it on the back of being an ex-president. As long as Trump cuts out the silly promises like the wall between the US and Mexico he might just have a chance of doing something productive.
     
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