Investment Schizophrenia prior to a Trump Presidency

Investment Schizophrenia prior to a Trump Presidency

Welcome to illuminati silver, we tell you
the truth about silver. Today is Monday 16th January 2017 and we are
briefly commenting on why we believe there is schizophrenia in the investment market
about a Trump Presidency. We all know that Investment Managers and Traders
attempt to predict future market movements based on a number of variables. One of the
greatest variables for 2017 is in our opinion the impact of a Donald Trump Presidency. We
have already seen that since his becoming President-elect the Dow Jones has risen over
1500 points when during the same period after Obama’s 2008 victory, the Dow had fallen 1,000
points. Of course, during much of Obama’s term stocks have rallied: the Dow has gained
close to 10,000 points since he was elected. Gold in this period has fallen by around $80
and silver by almost $2 an oz and the dollar index has moved up from 97 to 101.
So what does this suggest? Well many fund managers believe that a Trump victory – especially
coupled with a Republican Congress – is very good for US mid cap, US small cap and
overseas markets, such as Japan, that are sensitive to a strong USD vs their own weak
domestic currency. Shortly after the US Election results, the
market began to immediately discount expected policy changes in 2017 that will likely lead
to a pro-growth economic agenda which resulted in the figures just mentioned. That agenda
includes cuts in individual and corporate tax rates, increased spending on defence and
infrastructure, and a rollback on energy (good for energy stocks and industrials), and regulations
including Dodd-Frank (good for financials) and the Affordable Care Act (good for small
businesses). This raises expectations for faster GDP and
private sector job growth, higher inflation, higher interest rates, and, in the immediate
future, a stronger Dollar. If Trump’s plan to cut tax and regulation
passes the Republican Congress, it will likely result in greater economic activity, industrial
production, investment and consumption in the US. This will benefit mid and small cap
companies that derive most of their sales and profits in the US, and who are less impacted
by a rising Dollar overseas. This augers well for the equity markets and
a stronger dollar and interest rates and augers poorly for precious metals such as gold and
silver. Now this is where the schizophrenia comes
in. President-elect Trump has already called out
China and threatened tariffs against it if it continues to devalue its currency. He has
also stated that he wishes to form a closer relationship with Russia and has condemned
his security services for leaks and breaches of information. In addition, his wall with
Mexico will go ahead and Muslims and others wishing to immigrate to the US are anxiously
waiting to hear what policies Trump will actually put in place which may affect them. He has
muted an intervention in North Korea to prevent them developing their nuclear arsenal and
no-one yet knows what he is going to do about Iran and its potential nuclear programme.
This all serves to create uncertainty and by its very nature causes both concern and
insecurity which markets do not like. In addition there could be retaliation, counter tariffs
and perhaps even the selling of dollar denominated assets abroad. Should a President Trump introduce
what may indeed be controversial policies and especially some that could have military
repercussions, then there is no doubt equity markets will suffer, the dollar will fall
and there will be a flight to precious metals. The very opposite from the first proposition
we have mentioned. What will happen? No-one really knows. The
stock markets have had a good run under Obama whilst the precious metals markets have not.
Yes this could all be reversed or alternatively, Trump may prove less confrontational than
many suspect and the US economy rip-roars ahead.
We shall all get a better idea in a couple of weeks as President Trump settles into his
job and makes his policy announcements. Meanwhile any rise or fall in gold and silver prices
during this week will have little bearing on their longer term movements including the
rest of the year until there is greater certainty coming out of the Republican camp.
The situation is finely balanced but we do suspect there will be some currency, equity
and commodity turmoil in both directions as we approach Inauguration Day and will glean
a much clearer picture, as to the future, by the end of this month.
We hope you have found this video interesting and informative and if so, please give it
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be found at Disclaimer:
Illuminati Silver owners come from a background of Banking, International Wealth Management
and Economics. Having now retired from these worlds we are not qualified to give investment
advice. Therefore, this and other productions must not be deemed to be giving such advice
and merely represent the personal views of its owners.

25 comments / Add your comment below

  1. what with the no entry sign at what is perceived 2 B the final hurdle 4Mr.tru.p.not losing sight of the gloves4this member.

  2. Trying to decide when or not to buy precious metals since the inauguration has driven me rather mad.

    I held off on some purchases back when it hit below $16 because you had indicated that it would possibly drop even lower. I sense that you may be correct and waited – but now I'm starting to second guess myself.

    I will be watching the news eagerly to see who's prediction is correct.

  3. There has also been a lot of speculation that "Dow at 20,000" is some sort of "tipping point" or "dump signal"…and it definitely seems as though that figure seems to be almost deliberately avoided.

    Sure it's just the idle speculation on the net, but it is an interesting theory that, until we break through it, we won't be able to disprove, or be surprised that "the crackpots were right" about it. If it cracks 20k and then immediately drops a few thousand…it'll be a sign that we should pay more attention to the folks in the potting shed…

    Any way you slice it, this is going to be a wild year…and that's not even considering the "perfectly wonderful refugees" flitting about the planet, and lowering western IQ averages, while concurrently raising crime rates.

    It sure is a good thing that politicians and banksters "know what's best for us" all the time, isn't it?


  4. This is good advice, but i hate it how i type in 2017 silver skyrocket and so many things come up making out like it will happen for sure. Yes i know that happens every year 🙁 i just wish it would go up a few dollars so i can sell and break even. Damn silver is a 10-20 year investment.

  5. Bitcoin bitcoin bitcoin!!! Trump's director of budget and finance is a blockchain technology and bitcoin investor! oo yeah!

  6. i have money on the side to buy silver and gold miners.. im still waiting for a pullback. do you think they might smash pms before the inaguration?

  7. honestly Surprised that you didn't factor in the already obvious 15k Units of US Military (Ground and Infantry) build up along the European Russian boarders in this edition…& that the Precious metals indicator on the USDEBTCLOCK.ORG pg has seen a whooping drop for both AU & AG…all extremely interesting moves that's yelling out "Creative Accounting" and "Art of War" maneuvers. I have this weirdest feeling that a possibility that a "3rd Term" card is on the table ready to "Trump" the current hand at play and to Fulfill the Prophecies that the King of the South shall clash with the King of the North, BWAHAHAHAHA I know…sounds Conspiratory, but heck I might as well live up my new found title for 2017 "The Preacher of Storms".

  8. I got my trump silver coin coming from the states…. hopefully this does NOT happen.. but if he gets killed it will have a real collectors value i think…
    i like trump .. so i hope he lives a healthy 8 years in office

  9. Thanks IS for the quality info….But please don't use Schizophrenia as a means to describe an event …..Schizophrenia is a very disturbing illness causing a life time of suffering to the individual and their family…. where as what you're talking about is a market that is and always has been manipulation by a bunch of greedy narsasistic ego centric people…..The market changes as and when those at the top see fit…..Sorry for the rant I work in Mental Health and feel strongly when the word is used to describe something thats changeable when the illness is far more complicated than that…Regards

  10. Another informative video as always. Thanks. No we don't know, but changes that have occurred since the election should give us a clue. He's already had an impact and he's not even the president yet. As for Obama, any rise was a given considering the market was at rock bottom. Where else could it go but up? Does he get credit for that? Mm, no. It rose in spite of him, not because of him. Personally my investments are 50% in large cap US funds, 25% in small/mid cap US, and 25% overseas. That's my plan, your results may vary.

  11. We will just have to wait and see what happens on January 20th.  He has already done some good (keeping companies and jobs in the US, versus going to Mexico or other countries) BEFORE ever taking office.  A total collapse cannot be blamed on President Trump, but everything that had transpired before he came on the scene.  After all, the only reason he came onto the scene is because of the buffoons in office before he ever ran (think Bush, Clinton, Bush, and Obama in that order).

  12. Thanks again I.S.
    I am not to sure how many people believe the Trump (Trumpeter) and his noise, anyone with the powers of observation can see he is just one member in an orchestra of players and make no mistake there is a conductor. He serves well the script writers whether he is aware or not makes no difference, he will be the guy that enables the masses to beg for the Club of Romes Agenda 21 to be implemented either through his disasters and failure of otherwise again matters not, it will come one way of the other. Believing or not makes no difference either, so do as you will and enjoy the ride.

  13. I'm so glad to hear other people say it! Seems like so many are hanging their hopes on Trump. I've heard some absolutely ridiculous comments, as if Trump were anti-establishment! Come on!

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