It’s Easier to Follow the Money

Market Movement Experience

The current Administration has made it clear that they want their actions to be measured by the stock market. With many of the top cabinet people having a good dose of market experience, they appear well qualified to move the market during this period of program development, the period before we see economic performance based on their actions. It’s almost like we have an official CNBC cheerleading squad.

Following the Money

Our two  tracking funds were set up to follow portfolios that were designed to perform in either of the two scenarios that could evolve.  So far the two portfolio’s are bouncing around in a very tight envelope.  Yesterday’s action saw the Trump success oriented Fund move up to the middle of the envelope and the Trump failure Fund move to the bottom of the envelope.  We will just have to see if yesterdays movements were the start of a breakout or just more bouncing around.

Why is it Easier?

As the “Donald” says, this is all very complicated.  So much proposed change, so much unknown concerning international backlash, just so much unknown, the only thing consistent is the quantity of hype.  So I find feel more confident in seeing a quantifiable set of numbers based on packages of broad market portfolios, not just the Dow.

And, Keeping it Simple

Not to forget, our Trump Implosion trade, long gold and bonds which we established and mentioned on December 20, 2016.  As of this moment, Gold is up 9.4 % and 30 yr T-bonds are up 1.0 % from that date, even with the bond crunch the past few days.  We still look for long-term interest rates to trade under short-term rates before the end of the year.

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