Another Correct Prediction: Trump Wins, Stocks Surge

Last week the liberal media predicted that stock market and economy would tank if Trump won. The exact opposite happened: After he won, although the market initially fell a few percent overnight, it regained it all and then some. It’s now 1% higher than before the election, as shown below:

In a post last week, I argued that the doom and gloom over Trump was overblown, and that any dip would be a good buying opportunity. Yet again, I was right, as is the case many times here. I was also right about Trump’s odds being higher than purported by the liberal media, and that Nate Silver’s polls were likely the most correct, although he too was wrong in assigning such high odds to Hillary. I advised not selling and to ignore the useless pundits who try to spread fear and sensationalism.

However, treasuries and tech stocks have gotten clobbered over the past two days, which I did not foresee or else I would have sold the and not lost money. But overall, the market did go up, but not quite in the way I was expecting. Trump is promising a huge stimulus plan (aided by a Republican house and senate, guaranteeing its passage) that includes defense spending and tax cuts, and such spending is inflationary, causing treasury bonds to fall. The fact that the stock market responded so positively evidence that the GOP is the party of pro-growth (defense, tax cuts), whereas the left wastes money on low-ROI programs like education, disability, and welfare. The stock market didn’t rally when Obama in 2009 announced his stimulus, but it liked Trump’s. The post-2009 bull market is due to profits & earnings expansion and to a lesser degree fed policy, not because of anything Obama did.