How to Get Rich in Trump's America
A lot has been said about Donald Trump. Yes, he has the greatest hair. Yes, he has tremendous skin. Yes, he will live another 200 years and defy the laws of physics.
Trump has relentlessly emphasized his role in the US stock market’s meteoric rise and for good reason. US stock indices have consistently made news highs under his stewardship. Bar whether you agree or disagree with his methods, looks, rhetoric, or whether you feel that he is piggybacking on Barrack Obama’s hard work. Whether you love or hate him. Could it be that for the first time in his business career, at the helm of America.inc, he is offering an opportunity for others than himself to get rich?
Needless to say, in his campaign for re-election the stock market will play a significant part. It could even be assumed that for him to be successful, further new highs will need to be achieved. And perhaps it is precisely Mr Trump’s strategy at the highest level.
Let’s start with the Federal Reserve. The Federal Reserve’s monetary policy has been independent of the White House for over a century. Mr Trump has different ideas, and through his favourite platform of communication, Twitter, consistently disagreed with the Fed. Mr Trump is lobbying for a rate cut which would ease lending, depreciate the US dollar and drive investment in stocks. Think of it as the tweet that enables him to tweet and do what he pleases – he makes money, he stays.
But the Fed stands firm. There will be no influence from the federal government.
No problem for Trump. He gets what he wants. Here is a guide to making money without actually doing anything concrete when you’re in power.
Part 1: Slap massive tariffs China and Mexico and threaten everyone else. Investors run for the hills. Stock market dips.
Part 2: The Fed’s dual mandate to support the economy and price stability. Jerome Powell announces he will cut rates should the slump continue. Markets rally.
Part 3: Announce negotiations for tariffs are resumed and spin it positively. Markets rally again to new highs.
Part 4: Repeat whenever necessary
What were the actual concrete steps taken in this process? None. Rates are the same. Tariffs are the same. But the Stock market is higher than ever.
Genius, crooked, morally corrupt, what have you. Did you buy the dip? Want to be rich? Follow The Donald, and you’ll be sitting on a golden toilet in no time.