So there we have it. A victory for the underdog. Donald Trump is the next president of the USA, who would have thought it?
Certainly it’s not what the majority wanted, but he appealed to the average person in the right states to get his victory. But what does this mean to us who follow financial markets?
Everyone (including me) thought Gold would be where the money would go on a Trump victory, however it doesn’t seem that way just yet. Things might change as he gets into the Whitehouse, but right now it stocks look like they want to bounce. Relief rally if you will. If I were to predict, I would guess at Dow Jones 20,000 and maybe just above, then falling hard into his mid two years of presidency.
Gold could still end up being a really good buy over the next year, if it heads lower. Long term, there is still growth in the precious metal.
But I get the feeling Trump will want to leave a legacy behind. He’s 70, and won’t have many years ahead of him. We will see big changes, he will rebuild cities and create new jobs. So in turn business will boom, and the economy along with it.
Stocks will rally at times, and unless there is a constant shift in interest rates, I don’t think there will be much falling going on in the short term.
So hold onto your hats, and get onboard for Donald’s final hurrah.