Trump meditations for a trader

So, Trump is the new leader of the free world, huh?

-Winter’s come

This just in! (my roof terrace this morning)



Is the election result important?

Really? How so?

Will it affect you?

Can you do anything about it?

If not, focus on something else.

Probably no better or worse than the alternative

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.

Come on!

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.

Remember Brexit?

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.

Making mind reading and election predictions difficult since 1927

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).

For the love of gold – Army Of Lovers

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?

Happy trading!

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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15 Replies to “Trump meditations for a trader”

  1. Hi Mikael,

    I always enjoy your articles! On your PS above, what do you think this and Brexit are symptoms of? Also, what do you think is the ‘worse to come’ (outside of potential financial market movements)?

    Thanks, Ed

    1. Reason: The crony capitalism and rampant nepotism that make ordinary people feel (rightly so) they are being conned. Currency debauchment (QE) and excessive legislation in every area of private life except where it counts (violent crime) – at least the perception.

      Worse to come: more money printing, political strong men, possibly wars

  2. Hello Mikael, I am wondering about your nuclear investment. I myself have invested in uranium miners and I would like to know why you chose Studsvik over uranium mining companies; and would uranium miners be a good way to play nuclear if investors are stuck in the Canadian stock market (like myself)? Thanks!

    1. Can’t really say. No I bought Studsvik on potential for realizing hidden asset values. Uranium mining could very well be a great investment, but I have no idea how they are valued these days.

  3. Hi. I sold at 18220 and bought at 17500. I had started spreadbetting in May 2016 with 10 k sterling and ended up with 165k by yesterday. Reading your e book had been very instructive too thankyou. It was no suprise to me that trump won the same with brexit. I think this is the catalyst for other nations considering leaving say the Euro. France and the Netherlands hinted so. I would not even be surprised if Germany goes first.


    1. My thoughts more or less exactly (regarding the break up of the euro/EU and the sequence of events). Let’s start with Italy and Greece.

  4. Your Swedish cuckness is transpiring, you’re trying to sound impartial and detached but it really sounds like you’re addressing an audience that is upset or triggered by Trump winning. Don’t worry, like many others I’m very happy he won.

    1. Did you know that when you judge other people, often it says more about yourself than the person you are judging? Whats the deal with this cuck business?
      Have you ever been to europe or sweden or you are just talking about stuff you read on the interwebz?
      By the way, the muslim problem, was created mostly by the western elites in which the US has the major share of blame.
      It wasnt Sweden who launched 110 tomahawks against Lybia, invaded Iraq or gave weapons to the Syrian resistance which later turned into ISIS.

    2. 99% of Swedes seem to be upset, so… yes. I, however, have no personal thoughts about the man, but I do think the sequence of Clintons and Bushs is upsetting.

  5. I think the point thats made and should be made is it’s largely irrelevant who’s in the White House. A lot of people would have been disgusted if Clinton had won. Would it have really effected their lives? Can we do anything about.
    Nah :). So focus on what you do have control over. Your health, your skills, your relationships, your happiness
    Well done Mikael I really enjoy your stuff mate

  6. Good article, Mike. Just to illustrate how nuts politics is, Obama is being violently protested in Greece today. How they could possibly think he affects them is anybody’s guess.

    Trump is actually a pretty normal guy, who the press has vilified as a monster. They did this because he funded his own campaign and cannot be bought off, like every other politician in America. They used fear mongering just like for brexit. Enough voters saw through the lies.

    Interesting how bonds have been crushed, and nothing else. I bought some income investments that a week ago were too expensive. Now they’ll pad my retirement income and make life even more fun.


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