How to Analyse the Stock Market in the Donald Trump World

April 11, 2017 4:20 am0 commentsViews: 73

Things are going to be great. We are going to build a great wall. America first. Lock her up. These expressions have now entered into the lexicon of our society thanks to Donald Trump. While we are only months into his administration, few would argue that the world has taken a turn for the unpredictable. Although this has many average citizens worried, such a situation is even more concerning for those who are actively invested in the markets. Is there any way to pick through the smoke and mirrors in an attempt to find a way to make sense out of what may be present around the next corner? Let us take a closer look.

Politics Are No Longer Normal

After eight years of Barack Obama, traders have grown accustomed to rather predictable announcements emanating from the United States on a regular basis. If anything, his administration wished to keep international arrangements and economics at a status quo. This has all changed with Donald Trump.

We need to keep in mind that first and foremost, Mr. Trump is a businessman. Although this can be taken a number of different ways, it is prudent to assume that he will be looking out for “number one”. Hence, his “America First” rhetoric has been stated time and time again. Traders need to factor this stance into their policies and consider how a Trump policy shift may affect their holdings (particularly if these are dollar-based assets).

Sudden Shifts

Business as usual seems to have left Washington DC with the Obama administration. There is perhaps no better example of this than the paradigm shift in regards to Syria. No less than two weeks ago, the Trump camp stated that it had no interest in interfering with the Assad regime. This all changed when 59 tomahawk cruise missiles were launched against Syria only days ago. Investors need to be ready for similarly sudden shifts. This will enable them to avoid potentially negative pitfalls while capitalising on favourable conditions.

Which Markets to Watch?

United State markets such as the NASDAQ, the S&P 500 and the DJIA have always been monitored by international investors. These should now be even more relevant. American-based platforms are all barometers of what may be “in the works” behind the scenes. If there is a major political announcement or a sudden policy shift, such sectors will likely provide timely hints before the news disseminates to other areas of the world.

The Importance of Live Data

In the world of Donald Trump, economics and politics seem to be changing on a daily basis. So, market fundamentals may not be as relevant from a short-term point of view as they were in the past. Technicals and expert analyses are likely to enjoy an increased importance. Thanks to the Internet, it is now possible to access such trading news and insights with the click of a button with the help of CMC Markets. You will be able to make well-informed decisions while embracing a flexibility that would simply not be possible with more traditional methods.

It does appear that Donald Trump is here to stay. While the world may no longer represent business as usual, business will nonetheless continue to evolve. These are some broad guidelines to follow so that you can “trump” the markets themselves.


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