Wednesday 9 November 2016

Trump Presidency.. What next?

穷小子 must admit this, was expecting a close fight, but didn't expect and don't wish Trump to win the campaign.
After today, guess that everyone should have know by now that any thing can happened in this world. First half of the year is Brexit, and second half is Trump. On a side note, 穷小子 vote goes to Brexit.

What next?
穷小子's guess would be America will grow stronger as promised. Mr Trump has pledged to tear up or renegotiate international trade agreements. He is going to bring the jobs back to America. The new agreements may bias towards the Americans.
In short term, we may see funds and monies will flow back to the Americans. In a longer term, we may see a stronger USD again. Strong USD means that Gold price will increase as well.
On the other hand, with a stronger America, it may seems the rest of the world will grow weaker. Not literally the rest grew weaker, but the difference will be there.

Earlier this month, analyst are expecting a 76% probability of a rate hike by year-end, but now, it may have dropped to 20% or lower. Investors have tended to favor Trump's Democratic rival Hillary Clinton as a status quo candidate who would be considered a safe pair of hands at home and on the world stage. Uncertainties doesn't favor the Fed's decision for a rate hike now.

Perhaps his victory is because of "Make America Great Again!!" Those are his words which 穷小子 had heard pretty much during his rally. The victory seems good for American but may be bad for rest of the world. The Americans have made their choice, let's respect and trust their decisions. The Americans know what is the best for them.

Hopefully can use this opportunity to buy some undervalue stocks. With the recent price drop, REITs may appears to be a safer ground if there isn't rate hike next month.

#MakeAmericaGreatAgain

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