So, Trump is the new leader of the free world, huh?
1. It’s called democracy. If you’re hating today, you’re hating on most of US voters 2. Most likely, there won’t be any tangible difference
— Sprezzaturian (@TureMasing) 9 november 2016
Is the election result important?
Really? How so?
Will it affect you?
Can you do anything about it?
If not, focus on something else.
For example, have you meditated today? One minute off social media for relaxed, solitary and quiet contemplation is enough to set you off in the right direction for the day. Don’t tell me you’re “busy” tweeting and posting on Facebook what you think about the election outcome.
One single minute
Either just breathe,
or pay attention to all your body parts,
or solve a problem and make a decision
Do you have food, water, shelter, friends, fun…?
Long or short?
If you’re trading the financial markets, instead of wasting time commenting the election, I’m sure you’re all over its short and long term implications for greed and fear, the likely growth, volatility and valuation trajectories going forward; the parallels with Brexit etc.
Long or short? This morning, this afternoon, next week, the coming 2-4 years? Which countries, industries, companies? Which asset classes?
I’m also sure you’re not wasting any time chest-thumping or whining about the outcome. A trader turns off his amygdala when working, or at least trades his screens for a walk outside whenever feeling it* calling for attention
* the amygdala, that is
What I‘m doing?
Yesterday I covered a fair amount of shorts (sic.) to make room for a new unlisted investment. It’s secret for now, but if all goes according to plan there just might be an IPO during 2017. Stay tuned.
All my other investments remain as they were: Long gold, long love (oxytocin company), long fun (GIG), long nukes (Studsvik), long friends (lent out money) among other things (see more in this post about news resources and my 21 main investments).
I have no intentions to make any changes whatsoever based on Trump becoming president.
By the way, do you remember how the title “president” originally was meant as a derogatory term, since the president wasn’t supposed to have that much power or get any ideas about grandeur? Up until then, and a while longer, a president was a more or less ridiculous and unimportant figure presiding over the local golf club or similar.
Summary: it is what it is
No matter whether you’re a trader or just seeking happiness, A is A. There’s absolutely no use crying over spilled milk; or, as it is in this case, predictions about milk possibly being spilled in the future (will Trump actually change anything at all?).
Turn off your irrational emotions, meditate for a minute or two, and see how you can tweak whatever curve ball being thrown to your advantage.
Will markets react at all? Will they move decisively (more than +/-20%) the coming year? What will central banks do? What about volatility, currencies, gold? Should you go long, short or neutral? Which specific companies cold be significantly impacted by new US policies?
P.S. What I think? Just as with Brexit I think this is a symptom. I also think it’s a harbinger of worse things to come. Right now, the economy and the financial markets are running on thin air, just not realizing the game is over and that central bankers aren’t omnipotent this time either. I’m not saying the world is coming to an end, I’m just saying that -50% for the S&P index never hurt anybody.
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