Your Trumponomics Survival Kit

By Murray Dawes, Saturday, 14 December 2024

China hints they will devalue the Yuan. The US dollar is flying while the Australian dollar looks sick. Will your portfolio thrive in the coming trade war between the US and China? Murray shows you what you need to do in this instalment of Closing Bell.

On 2 November I gave Closing Bell viewers exclusive access to a tip on a US stock called Roblox Corporation [NYSE:RBLX].

It had just released a positive earnings announcement and looked like it was ready to break out of a two-year trading range.

If you managed to jump on that one you are sitting on 15% gains in a month. That’s not including the benefit from the falling Aussie dollar.

As we head towards Trumps inauguration, we are seeing the US dollar continue its march higher. Investors should be considering whether it makes sense to gain some exposure to US stocks or even Australian stocks with US dollar earnings.

I have been giving you a few ideas in this vein over the last few months. As you can see from the sharp move higher in Roblox there are gains to be had by looking further afield than Australia.

China has made some noises this week that they are considering a Yuan devaluation. That may be a big story as we head into 2025.

The surprise Yuan devaluation in August 2015 sparked a global stock sell-off.

US PPI (Producer Price Index) came in hot during the week, with YoY (Year on Year) PPI hitting 3%.

US bonds sold off (higher yields) and the US dollar rallied as a result.

Higher rates combined with the coming tariffs may see further upside in the US dollar. The Aussie dollar is resting on major support and looks like it could fall sharply.

You want to take advantage of the situation rather than being hurt by it. That is what investors should contemplate while they drink beer and eat snags over the Christmas break.

In today’s Closing Bell video, I update you on the Roblox idea. I also look at the US 10-year bond yield, US dollar, Australian dollar and ASX 200 which is bumping up against major resistance.

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,

Murray Dawes Signature

Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps

All advice is general advice and has not taken into account your personal circumstances.

Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

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Murray Dawes is our resident expert trader and portfolio manager. He is a former Sydney Futures Exchange floor trader who went on to design custom trading systems and strategies for ultra-wealthy clients (including one of Australia’s richest families). Today, his mission is to help ordinary Aussie investors make profitable investments, while expertly managing risk.

He uses his proprietary system for his more conversative and longer-term-focused service Retirement Trader…and then applies the same system to the ultra-speculative end of the Australian market in Fat Tail Microcaps (this service is strictly limited and via invitation only).

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All advice is general in nature and has not taken into account your personal circumstances. Please seek independent financial advice regarding your own situation, or if in doubt about the suitability of an investment.

The value of any investment and the income derived from it can go down as well as up. Never invest more than you can afford to lose and keep in mind the ultimate risk is that you can lose whatever you’ve invested. While useful for detecting patterns, the past is not a guide to future performance. Some figures contained in our reports are forecasts and may not be a reliable indicator of future results. Any actual or potential gains in these reports may not include taxes, brokerage commissions, or associated fees.