Have you seen the market recently? Your 401k? IRA? E*Trade account?
Welcome to the Donald Trump Stock Market.
This first full week of February has been a frantic one. Since the inauguration of Donald J Trump as the 45th President of the United States, the market overall has gone on a huge upswing. Donald Trump lays claim to those gains through his massive Tax overhaul as well as creating a positive atmosphere for our economy with less restrictions and more confidence in the American market. With a booming economy, there are bound to be corrections to the market. On Monday, February 5th, the 10 year yield on Bonds hit 2.75%.
The CBOE Volatility index, which is a Market “Spook” meter, also spiked, causing a large selloff of almost 1600 points within a matter of minutes. The markets rebounded and the day only took a 800 point dip. The following day, the markets rebounded even further, with the Dow rising by 567 points. Only time will tell what the long term impacts will be from this volatility.
Now there will be many political conspiracy theorists that will say this is a “Deep State Ploy” to destroy the reputation of Donald Trump, or the “Democrats did it”. The truth is that the Market needs to be corrected. The huge upswing needs to get rid of the casual investors who bought for an upswing. I feel sorry for the ones that had placed Sell Stops on their portfolio and sold at the lowest point only to see that stocks rebounded nicely within just a couple of minutes.
The best investing strategy is always buy to invest, not to trade. People now are starting to invest in America, rather than previous administrations who continually traded away and gambled with America’s future by sending our jobs, our plants, and our resources overseas.