The Economy at a Precipice as Donald Trump Assumes Office

By many accounts, the election of Donald Trump has been the most divisive political event for America in modern memory. Depending on whom you read or talk to, he’s either a populist savior or a self-serving billionaire whose only interest in our highest office is the international deals he’ll be able to cut at the end of his four or eight-year presidential tenure.
 
In either case, President Trump, through his intended bold plans for the United States, his irrepressible Twitter presence, and his choices for a stalwart Conservative cabinet, has already stimulated a firestorm of controversy even before he’s taken the oath of office.
 
Make no mistake. Regardless of how you personally view President Trump, the sheer anticipation of this particular presidency has economic consequences. It’s all too easy to dismiss him as being all bluster and braggadocio. Since Trump’s defeat over Hillary Clinton last November, the Dow Jones Industrial Average has returned 8%, the S&P 500 Index 6.6%, and the Nasdaq Composite Index over 7%.
 
Despite what seems like the stock market’s positive reaction to the incoming administration, it’s fair to say that Wall Street professionals are acting more from fear than knowledge of what Trump will actually do.
 
According to a January 19, 2016 quote in a Market Watch article, Mark Grant, chief strategist at Hilltop Securities, put it this way:
 
“In my almost 43 years on Wall Street, I am not sure that I have ever seen so much consternation than at present. It is not just differences of opinion but it is a quite real fear of the unknown, I suppose. People just don’t know what they are getting into or where the country is heading, I suppose.”
 
There you have it – fear of the unknown. Not only Wall Street traders, but ordinary citizens don’t have a clue about how a Trump administration will change the United States, the free world or emerging economies.
 
Analyst and entrepreneur Niram Arora has articulately zeroed in on some of this feeling of uncertainty. Suppose, he asks, President Trump continues to anger China, India, Mexico and Germany? Suppose too, once in the White House, he keeps referring to the Chinese as currency manipulators? Or what if he encourages European Union member countries to renounce their trade pact?
 
While none of us, including Arora, can answer these questions with any degree of certainty, we do know if we invest too heavily in paper assets without a hedge, our nest eggs could easily suffer.
 
Traditionally, gold provides the very best hedge against failing stocks. Gold has already climbed $100.00 from its recent dip and has surpassed the $1,200 psychological support level. And, for whatever reason, should the President change his mind about even one significant economic issue, gold could very well soar.
 
For more information, call 800-777-6177 now, and ask to speak to a Fortress Gold Group representative.

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