The Brian Blog
Today's Topic:
The #TrumpInauguration & the Stock Market
Want more money in your stock account?
Of course you do!
Of course you do!
You're probably asking yourself the same question a lot of other people are asking: is the market going to react to Trump's inauguration?
Yesterday I had yet another friend ask me about this very thing, wondering if the market was due for a pullback like before the election. We mauled it over and found that nearly everyone in the office he works in was hedging for a pullback. Many of them had put their retirement funds in safe haven funds that won't move much if it does pull back.
He then asked me for my opinion. Now, this is nothing more than my opinion.
I studied the few charts and noticed that the trading volume has pulled WAY back over the last week of trading, which tells me something very well may happen, as so many are anticipating.
As for a crash or pullback? It doesn't exactly make sense to me because a lot hasn't changed since Trump won the election. And from what I can tell, Trump winning the election had an amazing impact on the stock market. Sadly, a lot of this growth has been pricing in some emotional expectations for what they believe Trump will do.
Considering Trump hasn't even been President for a day, and nearly 200 points of emotional trading has been priced into the market, I do believe we are likely due for a correction, though I don't believe it'll be the end of the world or any type of 2008 crash.
Bush's inauguration did have a small back following, and Obama's was during the end of the 2008 crash, but neither one shows a good indication of what is to come, especially since Trump has been such a uniquely treated candidate by the media.
With that said, if there is a pullback I would guess it to be somewhere around the 2200 line. Personally, I'm setting aside 10% of my retirement in the case of a pullback and plan to ride any bearish activity if it happens.
Bush's inauguration did have a small back following, and Obama's was during the end of the 2008 crash, but neither one shows a good indication of what is to come, especially since Trump has been such a uniquely treated candidate by the media.
With that said, if there is a pullback I would guess it to be somewhere around the 2200 line. Personally, I'm setting aside 10% of my retirement in the case of a pullback and plan to ride any bearish activity if it happens.
With 90% exposure to the Dow and S&P I'm cheering for another election effect, even if only a smaller version.
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