Welcome to illuminati silver we tell you the
truth about silver. Today is Wednesday 23rd November 2016 and
we are discussing yesterday’s rise in the Dow which closed for the first time ever above
19000. The Dow Jones Industrial Average hit a new
record high on Tuesday peaking at 19,044 in late afternoon trading and finished the day
at 19,023 The Dow, which includes 30 brand name stocks,
is up nearly 4% since Donald Trump’s victory over Hillary Clinton in the US Presidential
elections. The S&P 500 and Nasdaq are also at record
highs. So what is happening?
The markets now seems to think that Trump’s win, combined with Republicans retaining control
of both the House of Representatives and Senate, should mean that many of Trump’s market-friendly
policies will be enacted. CNN has reported:
“Investors are betting Trump will get a stimulus package passed that will help rebuild
much of the nation’s infrastructure. That’s why stocks like Caterpillar and U.S. Steel
have surged since the election. The market is also betting that Trump may roll back some
of the provisions of two signature laws passed during the Obama administration — the Affordable
Care Act and the Dodd-Frank Wall Street Reform and Consumer Protection Act.
Drugmakers Merck and Pfizer have rallied on hopes that the Trump administration won’t
focus so much on reining in the price of medications as Clinton might have. This could also be
good news for health insurers. And Wall Street banks JPMorgan Chase and Goldman
Sachs have popped on expectations that Trump will be more lenient to financial firms.”
The latest rally is a continuation of a very long bull run for the stock market during
the Obama Presidency. At the beginning of his term, the U.S. economy was still in the
midst of the Great Recession with the Dow having nearly tripled since then, from its
low of 6,400 in March 2009. But America’s largest companies aren’t the
only ones booming lately. The Russell 2000, an index that holds smaller U.S. companies,
also is at a record high. Investors are betting that Trump’s efforts
to bolster the U.S. economy will also be great for smaller companies, which tend to have
less exposure overseas. Many have asked the question why should the
markets rise now after Trump’s win but fell before it?
Surely it has been aware of his policies for some time. Well the Daily Intelligencer part
of nymag.com addresses this quite well: “When the market rallied the morning after
Trump’s victory, some rationalized the response by noting the conciliatory tone the president-elect
struck in his victory speech. But Trump has been anything but conciliatory in the days
since, and stocks have continued to rally, nonetheless.
It simply isn’t the case that investors rationally adjusted their expectations of
a Trump presidency, on the basis of information that only became available after November
8. The only satisfying explanation for the markets’
sudden change in perspective is that before Election Day, investors indulged in the delusion
that what was bad for the United States was also bad for business.
Then, after Trump’s victory, Wall Street’s superego went silent, while its id saw with
crystal clarity how many opportunities for short-term profit a president who believes
in regressive tax cuts and financial deregulation — but not in climate change — was sure
to present, regardless of whatever else his victory might portend.”
If they are correct, they foresee a Trump Presidency as being good for business and
attractive to entrepreneurs. If this view continues and Trump’s policies head in that
direction, we can see stock markets in the US rise even further. This unfortunately is
not positive for gold and silver prices short term, especially not for gold.
In an era of rising stock markets and potentially rising interest rates, the investment demand
for both gold and silver is likely to reduce thereby directly affecting their price.
Whereas there could be an argument that states an increase in business could mean an increase
in the demand for silver, the Silver Institute has already shown that the growth in silver
this year has not been the result of an increase in Industrial demand or physical coin and
bar demand but an increase in paper investment products which has had to support such investments
with a certain level of silver deposits. The key question is of course, how long can
this stock market bubble continue? Well for the moment, there seems to be no end in sight.
It does look at least initially, that a Donald Trump Presidency will serve to fuel those
fiat and manipulated financial systems which hard-core physical precious metal investors
loathe. We hope you have found this video interesting
and informative and if so, please give it a thumb up and share it on twitter. Also kindly
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is updated daily can be found at facebook.com/illuminatisilver Disclaimer: Illuminati Silver owners come from a background
of Banking, International Wealth Management and Economics. Having now retired from these
worlds we are not qualified to give investment advice. Therefore, this and other productions
must not be deemed to be giving such advice and merely represent the personal views of