Ross Powell is the founder of Survival 401k, a specialty financial services company that provides hard-asset based retirement account solutions and preparation recommendations. Please visit his website to explore the critical solutions that Ross offers. This article was originally published on US Daily Review: Trump Wins, Stocks Soar, Precious Metals Plummet, Bonds Burst
As the seconds ticked by the night of November 8, the world held its collective breath as it awaited news of who would be the next President of the United States. Those paying attention to corporate media outlets were left in suspended animation for hours as results were stalled and states uncalled. Meanwhile, asset prices gave away the game. At around 8:00pm eastern something dramatic and historic began to unfold. Over the course of the next four hours Trump’s win probability went from nonexistent to virtually certain. This led to massive swings in every asset class globally. Dow futures were down almost 1,000 points and paper gold rallied over $60.
Trump’s victory was declared and then, suddenly, something even more unexpected began to happen. While America slept, the entire move in stocks and gold reversed. It turned out that Trump’s election was a multiplied version of Brexit in more ways than had been expected. After the Brexit vote succeeded and shocked pundits as well as the markets, there was follow through to the downside in stocks for two days before the V-shaped recovery came into play. On the heels of Trump’s triumph, the reversal was well underway two hours later. This dramatic turn of events caught many professionals and prognosticators offside. Is this just an example of what Trump means when he declares that he finishes projects under budget and ahead of schedule, or – once we dispense with the sarcasm – is there something more going on here that has yet to fully play out?
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