Monday, September 19, 2016

Donald Trump presidency is good for Gold and bad for Stocks, Bonds

Donald Trump pictured with Robert Kiyosaki

I'm not a Clinton supporter and not really much of a Trump supporter. 

A Trump presidency would be enormously bearish for stocks. He's clearly not the known quantity and she clearly is the known quantity. She is far better known on Wall Street and the markets are always dismayed by confusion. Confusion breeds contempt and confusion would be part of his administration to begin with. So I think that would be terribly detrimental to stock prices were he to get closer to 42, 45, 46 percent and draw closer to where she is right now. 

I tend to be at this point somewhat bearish on Bonds. It has been a 32-year bull market and it looks like the peak was made, the low in yields several months ago. I think that a Trump presidency would probably allow rates to go higher and I think that would be terribly detrimental to bond prices on balance.

I think Gold would be supported by Mr Trump. Gold likes confusion, gold likes political dissent, gold would probably do rather well in a Trump administration.