Ways Donald Trump is affecting your trading process.
We all know that Donald Trump is famous for his decisions. But up until today we never really talked about his impact on the market. That is only fair to say that Trump doesn’t and doesn’t need to care about the situation in the rest of the world as he is a wealthy American who repeatedly said “America first”.
But we decided after all to look into the ways Trump can be influencing out own trading as we have at least 2 more years of his presidency. And we need to be ready for anything.
1. He makes the markets aggressive.
2. He is unpredictable.
3. He doesn’t care.
4. His policies lead to inflation.
5. He is too different from the rest of the world.
6. He is looking to start a fight.
1. He makes the markets aggressive.
With his rash decisions and aggressive international policies, it is only fair to say that he doesn’t exactly have a sot influence on the markets. On the contrary. Under his decisions markets tend to rapidly fall and/or jump. And that, of course, makes our trading, whatever assets we choose to trade next to impossible.
The situation is changing fast as it is. we don’t really need a catalyzer. But that is exactly what Trump is. he seems to be able to bring up the worst possible things in the market which makes the market aggressive.
2. He is unpredictable.
Remember the first time the United States tried to come to trade agreement with China? How did that end up? Oh, right! In more trade tariffs which led to the full-on selloff of Chinese instruments several times since summer.
So, not only Trump’s decisions bring markets to rapid falls, it is also pretty impossible to predict when he is going to come up with the new ideas in order to ‘improve’ America’s image across the globe which usually inevitably leads to the losses in the market.
3. He doesn’t care.
As I mentioned above, Trump is rich. And yes, his impressive career also saw rapid changes and falls. He has gone bankrupt several times and has risen up again from the ashes. But did you know that Trump’s empire is not public? That right. Take any jump in the market – it does not influence the value of his shares. or at least that is impossible to know what the real influence is.
So, why would he care about the public companies even if they do bring revenue to US treasury? He also wouldn’t care about the personal involvement of the people in the markets – individual losses, even massive ones are not going to touch him.
4. His policies lead to inflation.
We are not going to get al technical here. Let’s just say that Trump made his fortune on playing with the numbers. And, being fully backed up by Republican-including Congress his policies are not the ones that are going to keep US dollar inflation rate under control. In the long run his policies are going to be devastating enough for us to talk about devastating inflation rates of the US dollar.
5. He is too different from the rest of the world.
Good international climate usually leads to calm monetary policies, which in its turn is the reason for the good situation in the markets, but when there is a politician whose policies are this controversial and this different from the rest of the world it is only natural that the situation in the world is going to be strained.
That is why international markets do not actually favor Trump and that is why we have seen such an unstable performance from the greenback lately.
6. He is looking to start a fight.
He is too aggressive when it comes to political rivals. He treats other countries as of everyone is looking to destroy the United States. That is why he is always looking as if he wants to start a fight with his aggressive policies and statements. And we are the ones who end up suffering from it.
Here are the ways that Donald Trump can influence our trading. Have you been the victim of his sudden policies? Write in the comments!
