Tuesday Target | 45/52
Truth Bombs and the Orange Effect
A good day if you're tired of shadow control, phony competence, controlled media, weaponized justice, immigration for votes, speech repression, endless wars, and sterilization of minors. A bad day if you can't stand Trump’s brash authenticity—or the color orange and the glare it throws.
Below, as always, the minimum you need to know to get a feel for what's cooking:
Election Aftershock: A Shift in U.S. Fiscal and Trade Policy
The return of Trump to the White House, with a strong Republican Senate and a tight House race, is a significant turning point for both fiscal policy and trade. Trump’s agenda to extend the 2017 tax cuts, potentially combined with additional income tax reductions, will likely boost domestic spending and lead to inflationary pressure across various sectors. The proposed tariffs on Chinese imports, which might reach up to 20% across the board, could further strain U.S.-China trade and send ripple effects through global supply chains, potentially driving up core inflation by up to 50 basis points.
Dollar Dominance and Diverging Global Markets
With Trump’s win, the dollar is surging, reflecting broad investor confidence in a Trump trade environment, placing pressure on the euro and other currencies closely tied to U.S. economic policies. European equities have experienced volatility in response, particularly in sectors sensitive to tariffs, while the Japanese yen weakened as U.S. bond yields climbed. The dollar’s strength may also reflect heightened expectations for defensive monetary policies outside the U.S., especially in Europe, where concerns over trade headwinds are already prompting central banks to consider faster rate cuts.
Fragile Global Market Sentiment
The election has amplified underlying market fragilities that could lead to broader corrections if further geopolitical catalysts emerge. Reports suggest that Iran may exploit potential U.S. political transition vulnerabilities to launch strikes against Israel, which would sharply impact energy prices and global risk sentiment. At a time when high CAPE ratios in U.S. stocks reflect elevated valuations, any geopolitical shocks could prompt a defensive shift by major investors, following Warren Buffett’s recent moves to cash holdings.
Get Rich Overnight with Options? Yeah Right...
TUESDAY TARGET: When you rely on debt to buy back shares and gradually erode your equity, you may find things remain stagnant for a while longer.
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Please note, all content is for educational purposes and isn't personalized for individual portfolios or financial advice. Curious about putting any of these ideas into action? Juri von Randow is here to offer guidance or connect you with the right resources.