Gold Price: Will the Trump Bump be the Trump Dump?
The economic elite has done much to undermine their credibility. The rich got richer and the poor got poorer, providing fodder for President Trump’s victory. Already chastened for failing to predict the 2008 crash and Trump’s election, they have again misread the tealeaves.
It is a mistake to dismiss Trump’s missives or tweets as random missteps, which Clinton and Trump’s Republican opponents made consistently. Trump was posturing, sometimes testing the waters and sometimes obscuring his message, leaving him to negotiate on his terms. Governments, pundits and the populace should be prepared for his bully pulpit, and not the literal message. Investors would be wise to take a deep breath.
The New Year has brought increased volatility. The low interest rate environment is fading away, replaced by the politics of rage, the Brexit and the Trump trade. Beneath the veneer of Trump optimism is anxiety about a toxic, divided nation, and deepening global concerns over multi-lateral trade wars with Europe, China and the Middle East. The root causes of the Trump trade are much deeper, and underlying market optimism are wider deficits, more government intervention and an increase in protectionist measures.
Ing discusses buying on mystery and selling on history; Trump’s art of the deal; America’s debt; Russia and China’s Plan B; returning to the gold standard; gold is money; and stock recommendations.