With Trumps inauguration just days away it is clear some big players are making moves.
The biggest story is the large jump in long-term bond yields as the US dollar also heads north.
At the end of 2024 I set out my view that the US dollar would keep rallying as the Aussie dollar slumped. That call is looking good for now.
If US 10-year Bond yields keep rising and break out above 5% there is the chance we could see a spike higher in yields. That would really cause some problems for the stock market.
But as I point out for you in today’s Closing Bell video, we have to be prepared for anything from here because the rules of the game are about to change.
We don’t know what those rules will be, and we don’t know how the market will react.
Now is not the time to stick your neck out and make big calls about future market direction.
Instead it is a time to study where the lines in the sand are above and below the market, so you can change tack quickly if necessary.
Will Trumps tariffs and tax cuts cause a serious trade war that hurts everyone and forces rates higher? Or will his business friendly policies spark a massive bull market?
Currency and bond markets are hinting at the former whereas oil and copper point to the latter.
I would prefer to have my foot in each camp for the moment so I can jump quickly when the time comes.
In today’s Closing Bell I prepare you for Trumps inauguration and the new world we are all heading towards.
I cover US bonds, the US dollar, The Aussie dollar, Japanese 10-year bonds, the USDJPY (US dollar vs Japanese yen), oil and copper.
I’ve put together insights from my 30+ years of trading that will help you navigate Trumponomics.
I believe that the key to high returns without stress, is knowing you can survive any market conditions. To do that you need a risk management process that handles immense volatility.
I put this into action in my service Retirement Trader.
You can learn more about my approach by clicking here to get access to 30 years of trading knowledge.
Regards,
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Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps
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