We know what Trump is bringing to the globalists brawl that has already begun with shots like China threatening a trade war against the US. Globalists are not going just to roll over quietly for a Trump Administration.
Lisa Haven thinks that globalists could crash the US economy in response to Trump's win. Lisa thinks globalists could even try to assassinate Trump.
I think Lisa Haven is a bit too far on the side of paranoia, but I like hearing alternative views and some of the excellent points she makes. Regardless if you agree with Lisa Haven or not, one thing is clear that we can all agree on. Stock prices are not up because of fundamentals but on risky speculation on a Trump win which begs the question. Are we being set up for a big stock market crash?
When I expressed caution to a trader last week and that the market exists to ruin the greatest number of amateur traders at any given time, the trader replied I don't believe that. Another trader I expressed caution to about this market told me I have to just ride the wave higher.
Folks, your goal should be to “anticipate,” not “react.” If your big plan at getting rich from trading is to just “ride the wave higher,” you are in for some serious disappointment. Trading is harder than that. Riding the wave higher is a trading strategy of buy high and sell even higher. In other words, you are always chasing. Chasing as a strategy is ok until it's not.
The wise Djellala trader has this to say about when will the stock market crash.
You will hear some people online always talk about how the stock market will crash. They don't know. They just say the words that the stock market will crash. If the crash happens after a few days or one month or two they will say oh, didn't I tell you the market was going to crash? If the market is still going up and up and up and up those people will change their mind and they begin to speak about the market is going up, so it means they don't know people because no one knows if the market will crash.
I love listening to Djellala. He's a funny, no-nonsense guy.
Whether we are talking about individual stocks, the stock market, or the economy, when you're wrong just admit it and then move on. The goal is to make money, not to be right 100% of the time so you can stroke your ego.
AM TV and Peter Schiff predicted that the Federal Reserve could not stop their monthly QE injections into the economy. Even though the Fed kept cutting the monthly injection all the way down to zero, alternative media outlets AM TV and Peter Schiff kept saying the Fed wouldn't stop the monthly infusions because they couldn't as the patient (the economy) would die. Peter Schiff then went on to say that the Fed was not going to hike rates in December 2015 but instead actually cut rates. The Fed increased rates a quarter point right on schedule. For all of 2016, Peter Schiff has been saying that the Fed isn't going to hike rates again but instead reverse course and lower rates. In December of 2016, the Fed will likely increase rates another quarter point.
Most alternative media outfits think they have to be crazed perma-bears to get viewers. Maybe they do. Rather than AM TV and Peter Schiff admitting they were wrong about the Federal Reserve, they double down on their wrong predictions and do another “interview” together, check it out.
There are some really good points in this interview, don't get me wrong. However, to be a successful traders and investor, you can never be a perma-bear. You can never be a perma-bull. You have to adapt and respond to market conditions. That adaptation means you have to be willing to admit when you're wrong and then to just move on.
Folks, watch out for fear mongering. Fear drives viewership and video view counts on YouTube but being forever fearful is a great way to lose all your money at trading. Some parts of the economy will no doubt suffer under a Trump Administration and higher interest rates; however, higher rates will be good for other parts of the economy like Banking. A Trump Administration will be bad for multinationals and the Dow and parts of the S&P 500; however, Trump will be great for domestic businesses and the Russell 2000.
Small cap stocks are the place to be in a Trump Administration. Trump's economic policies will negatively impact large multinational corporations like Apple. Small cap stocks are all about domestic companies.
Small cap stocks generate most of their profits inside the US, exactly where Trump's economic agenda is targeting.
Since Election Day, small cap stocks on the Russell 2000 Index have surged 12.3%, far better than the 3.05% gain for the large-company S&P 500 stock index, and the 3.6% gain for the Nasdaq.
A massive amount of money is moving into small caps. The Russell 2000 has closed up for 14 days straight since Trump won the election.