Donald Trump’s Policies Translate to a Weaker USD & Stronger Gold Prices
$USD, $GLD, $AAPL, $XOM
US President Donald Trump’s basic tax reform will create huge incentives for Corporate America to move production onshore. That is a bad thing for those in the supply chain. It is a bad thing for Apple (NASDAQ:AAPL) and for Asia.
As Donald Trump policies roll out the outlook will be super for small-cap stocks in America. If the USD remains strong, it will be a negative for Asia and EMs (emerging markets).
But, do not see USD’s continuing in all of Y 2017. It may top out when Donald Trump enters the Oval Office on 20 January.
The Chinese are targeting a trade-weighted basket of currencies, not the USD peg. If USD stays strong, RMB Yuan soften. They China does not want the currency to collapse. China is waiting to see what happens with the Trump Administration.
Taking a call from Taiwan’s President was a negative signal by President Elect Donald Trump, and naming Iowa Governor Terry Branstad to be his nominee for Ambassador to China was positive.
There are some very sophisticated people in the incoming administration: Wilbur Ross, the Commerce Secretary is a billionaire investor and Rex Tillerson, as Secretary of State currently runs Exxon Mobil (NYSE:XOM) understand the world, as he runs the world’s largest company
HeffX-LTN is not optimistic on Europe as a the EU.
The Eurozone will break up in the next 2 years. So European equities are cheap and and good money can be made trading around them carefully, avoiding the minefields.