The Dow reached its totally arbitrary mark of 20,000, bucking a multi-week trend of retreating from its resistance threshold. Several things have happened since Donald J. Trump assumed the Presidency of the free world, many of them affecting market temperament. Lets go through some of those and try to sum up the last week and a half…
$1 Oil went higher with Trump’s signature of executive orders (EXORDs) signaling his intention to continue with the Keystone XL and Dakota Access Pipelines. These projects are more narrow in scope than people realize, but they show that President Trump is serious about backing big oil and other traditional energy sources. Though very many people are upset at the reversal of course on the DAPL construction, this is a prime example where you should be prepared to make money in spite of controversy. Those who have long position in oil are reaping the benefits of a questionable decision because they stayed agile and objective.
$2 Trump’s first EXORDs opened the possibility of repeal of the Affordable Care Act, as we all know by now. This puts the health care sector in a precarious position, not knowing what will eventually replace the ACA. The first bill to be introduced actually just gives states the “option” of withdrawing from the ACA, in which case the government will offer additional funding to backstop a replacement. If such a watered down replacement actually takes hold, health care providers in certain states will avoid the volatility in the rest of the market.
$3 Trump’s hastening of ‘the wall’ construction at the Mexican border and potential banning of immigration from countries that harbor terrorists, the international markets are experiencing more volatility and sentiments towards America are cratering. President Trump has maintained his aim to bring jobs back to America, which may continue to alienate partners who currently provide goods and services to American customers. There is still much to learn in this sphere and the impacts to be felt in equity, bond, and currency exchanges.
The bottom line is, you need to be in the markets to win off the good and bad news. Markets jumped after President Trump’s victory because investors expect relaxed regulations to spur market growth (seems to be true). If you are not invested, you can not win. Literally billions of new wealth was created while other folks focused on their emotions about the result of the election. Which were you? Get in it to win it. Start now. RIGHT NOW!