(An article by Daniel Loh written on 23 Jan 2017)
Ever since Donald Trump election, the world stock market has rallied crazily! Dow has increased 2000 points, 11%. Nikkei has increased 3600 points, 20%. Even Singapore STI has amazingly rallied 270 points to 3020, up 9.7%!
What is happening???
Shouldn’t the market plummet down like what most investors expect after Trump election?
Will Donald Trump’s inauguration continue to propel the performance of STI stocks in 2017?
If you want to know what are the 4 Donald Trump policies that could affect the world or Singapore stock market in 2017, read on…
Policy 1: Bringing Industrial Boom Back to US!
The number 1 reason why Donald Trump won the election is his promise to bring back manufacturing jobs back to US. To help America to win back jobs, he promised manufacturing companies huge corporate tax cuts to as low as 15%.
He has also given car manufacturers a lot of incentives to build their car manufacturing plants in US instead of Mexico.
That is the reason why industrial sector stocks has run crazily ever since the election.
In fact not only has US industrial sector outperform, Singapore industrial sector stocks have also boomed!
Take a look at FTSE ST Industrials Index. It is one of the best performing index of the last 2 months!
We do foresee Donald Trump hell-bent agenda on Jobs creation and tax policies and incentives might bring about the next Industrial Revolution 3.0 in US.
If you wish to know more about the Industrial stocks to invest in Trump’s planned industrial sector boom, do register for Daniel’s upcoming seminar below!
Policy 2: Removing Banking Regulations will give Banks a Free Ride!
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The Financial sector has been the best sector in US stock market ever since Donald Trump election!
UOB share price has gone from $18 to $21 in just one month! OCBC from $8.30 to $9.40! DBS from $14.80 to $18.20!
The major reason is because of Donald Trump’s agenda to remove the many regulations imposed on the Banks since the 2008 Subprime Bubble.
The Banks just can’t believe their luck! Removing regulations means more products to sell now – meaning more money to make!
One of the bank regulations passed is the Dodd-Frank Act that was implemented in 2010 as part of President Obama’s attempt to prevent another financial banking crisis like in 2008.
Trump has stated his intent by appointing his new Treasury Secretary, Steven Mnuchin. During his nomination announcement, Steven Mnuchin has spoken out against the Dodd-Frank Act, saying that he would eliminate many aspects of Dodd-Frank.
If Donald Trump is successful in repealing Dodd-Frank and removing banking regulations, the largest beneficiaries will be the BANK STOCKS!
If you wish to know which is the BANK stock that is going to benefit the most in Singapore or US, and what is the direction of Financial Sector in 2017, do register for Daniel’s upcoming seminar below!
Policy 3: Bringing Back The Good Old Energy – CRUDE OIL!
While the Obama administration was huge on clean energy, Trump is going to bring back the Republican obsession with traditional energy sources like Crude Oil.
During his administration, President Obama has cut off millions of acres from possible energy exploration in the Alaskan region. Energy companies claim that there are more than 10B barrels of oil in that area.
Trump and Republicans have already expressed their desire to repeal those prohibitions to allow for oil exploration.
Apart from allowing for more oil exploration, Trump is also looking to remove clean energy policies and continue to extract coal and give more jobs to coal mining cities.
Which Energy stocks will be the top pick for an Energy sector boom?
What will be the direction of Crude Oil given the production cuts by OPEC countries and Trump’s new Energy policy?
Find out more from Daniel in his upcoming seminar where he will analyse the Winners and Losers from Trump’s New Energy Policy.
Policy 4: Trump number 1 Enemy is China, clearly not Russia!!!
Trump has been a great businessman and a tough negotiator throughout his life.
In his election, he has clearly defined America number 1 competitor and enemy in the next 10 years – China!
Even on his campaign trail, he slapped China as a currency manipulator or as the culprit of the biggest job theft in American history.
Clearly, Trump will be getting tough with China at everything - political, military, economic and trade issues!
How will these heightened tensions between US and China affect China or Asean economy?
On the other hand, the media is surprised at how accommodative Trump is to Russia. He even appointed Rex Tillerson as the new Secretary of State, who is Putin’s friend.
Trump even suggested he is open to removing economic sanctions imposed on Russia.
Foreign relations and stability will clearly determine how Hot Money invests!
As an investor, we should have the foresight to predict what might happen under Trump’s foreign policies plan? There are already clear money making opportunities!
Find out more in Daniel’s seminar about how investors can benefit from US foreign relations?
