Today is America’s big day: where citizens are given the right to exercise their voting rights to entrust upon a very special individual who will run their country.
For months, people have taken sides, alliances shifted, and even friends ‘unfriended’ each other on social media. It has led investors, traders and markets alike into a spiral of uncertainty and volatility.
As the live feed started showing the voting results of the states since morning, we were glued to our screens. Florida was the first state that Trump overtook Clinton by a margin of 20%.
In the afternoon, the Trump’s winning margin grew to 50%.
As a result, the DJI, S&P and NASDAQ Futures fell. For currency pairs, USD/JPY, USD/MXN were among the most affected.
The real attention was in his first speech ever as The President.
He mentioned that Clinton called him to ‘concede’ defeat, while he congratulated her on her campaign.
He also notably mentioned that:
“Ours was not a campaign but rather an incredible and great movement made up of millions of hardworking men and women who love their country and want a better and brighter future for themselves and for their family. It’s a movement comprised of Americans from all races, religions, backgrounds and beliefs who expect our government to serve the people, and serve the people it will. Working together, we will begin the urgent task of rebuilding our nation and renewing the American dream.”
For traders and investors, this might seem fairly reasonable on the surface. But recalling what he had mentioned before in his campaigns – bringing jobs back to America, changing trade agreements and even building a wall at the border of Mexico, this poses a serious threat to the global economy.
Adding more uncertainty to the situation, there is a strong sentiment amongst the public and our users that the Feds is very likely to increase interest rates come December. There was a post on whether the Feds will increase the rates when Trump is elected.
There was even an article on the possibility of Yellen quitting when Trump is president.
As nobody is able to tell the future, investors and traders are now divided into 2 distinct camps.
One camp of investors are now flocking to safe haven assets such as gold. If you’re wondering how to buy gold, there are always gold related stock counters and even ETFs. For example, $CNMC goldmine , $Anchor Resources, and SPRD Gold Trust (GLD).
On the other hand, there is another camp who find that currently, the market is merely facing a correction. Hence, it might justify a good time for market entry.
These two camps are distinguished by opportunity, timing and risk. They also form the market, as buyers and sellers… in the same queues for the same stocks.
Just like how the Republican party contested against the Democrats, only time will tell which camp will triumph.
To get more insights, opinions or opportunities, see what our community have to say. It could very well reflect the general sentiments of the market as it’s a market pulse that’s live.