Markets Tank as Trump Points Finger at the Fed.
It’s been a bloodbath overnight, as traders saw what occurred in the US markets – despite there being no specific catalyst for such a move – and ran for the exits as fears increase that global risks are mounting. While people are logically pointing to the bond market rally to explain the sudden panic – most notably Trump who’s been laying the groundwork for blaming the Fed for the last couple of months. Trump was extremely quick to point the finger of blame at the Fed for raising rates too quickly, but as the CPI data is expected to be released today, inflation is running above target. As is to be expected, Trump is not going to want to take any responsibility himself for huge tax reforms that provided significant stimulus in an already booming economy, forcing the Fed’s hand to hike faster than they may have wanted, or for creating volatility in the markets by starting a trade war with China.
There is the possibility for this to be nothing more than a short, sharp shock that markets quickly recover from but the proximity to the mid-term elections in the US could make it a problem for Trump if it turns into more. That more than likely explains why Trump has been laying the groundwork in recent months, in preparation for such a situation so the seed of blame has already been planted, enabling him to quickly come out on the attack as he has. What a guy!
We make money from Trump.
Despite all the frantic selling, we have been predicting this for months now, and were prepared as you can see from some of our trades on one of our very small PAMM accounts.
Find out our strategies for technical’s and fundamentals that lead us to be successful in this long overdue and necessary correction. We do not think this is the beginning of a recession but the Trade War is certainly starting to affect asset prices.
Find out how to make money and diversify and protect your capital in such turbulent times.
Fill in your details in the form below and we will show you how we make money from Trump.