Welcome to illuminati silver, we tell you
the truth about silver. Today is Thursday 10th November 2016 and we
address the issue as to why stock markets have recovered and gold prices fallen back
a day or so after a Trump victory. Despite a Trump Presidential win, Asian share
markets have surged back after Wednesday’s sharp sell-off.
Many, including us, expected a market fall and it did not materialise but for a few hours.
Yesterday: • Dow Jones ended the day up by 1.4%.
• The S&P 500 was up 1.11% • Nasdaq was also up by 1.11%
• Japan’s Nikkei 225 index rose 6.7%, more than recovering losses from the previous session.
• Hong Kong’s Hang Seng index added 2.1% • Australia’s ASX index up 3.3%.
• France’s Cac index and Germany’s Dax both closed about 1.5% higher after erasing losses
of more than 2%. • In London the FTSE 100 index dropped 2%
at the start of trading, before recovering to end the day 1% up.
The US dollar also rose throughout the day and continued to make gains in Asia this morning
with the dollar index now standing at 98.5 Chief economist at IHS Markit, Nariman Behravesh,
said: “after the initial shock, investors seem to
feel that a Trump administration could be good news for US businesses, with lower taxes
and a reduced regulatory burden”. Even Gold has fallen back below the $1300
level, currently standing at $1288 but silver so far has remained quite robust falling only
20 cents from its weekly high of just over $19.
Things are not so good for Mexico however. In late afternoon trade, the peso was down
by around 8% at roughly 20 pesos to the dollar, its lowest value against the US currency in
history. The Mexican stock market was also down by more than 2%. Trump’s policy to
build a wall between the two countries and tear up trade agreements has certainly hit
home. So what are we to make of this situation when
all believed that a Trump victory would cause financial chaos?
Well at first it did with markets and the dollar falling and precious metal prices rising.
However, the reversal is down in our opinion to three key factors:
1. Trump after winning, gave a conciliatory speech thereby suggesting that perhaps as
President he won’t be quite as radical as feared from his robust campaigning.
2. He does not take office until 20th January 2017 so, for the moment, policy is same as
usual and remember, and we are being just a little conspiratorial here, we are coming
up to Christmas Bonus time and such bonuses are only paid out if trading has been healthy
and generally markets have risen – so there is a built in impetus to keep talking the
markets up within the trade. 3. No-one actually knows what Trump’s policies
are yet in terms of detail, and so it is difficult for the markets to gauge their effect; after
all a number of economists and analysts do not believe that Trump can actually implement
much of what he has said. Once these details are known, then we will see the true reactions
of the markets. There are of course other factors, however
we wish to issue to our subscribers and listeners a word of caution. The higher the markets
go over the next few months, the further they can fall when sentiment changes, especially
if Trump does put into effect some of the harsh measures, which will be necessary, to
achieve what he claims he wishes to achieve. So for now, and until his inauguration, we
may witness some gains, but be sure in the early stages of a Trump Presidency we also
expect some pain. So any fall in precious metal prices should, in our opinion, be seen
as an opportunity for those whose portfolio is light to redress that balance.
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updates and offers. Our Facebook page which 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