How can we profit with Trump as President ?
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Probably all built in. Tesla has had a huge run. I am hoping Trump does not ban Tik Tok to ensure Oracle continues to host it.
The general U.S. market is very expensive based on many metrics such as the Shiller PE and the Buffett Indicator.
These metrics are not perfect however.
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I think it is a good bet that from now to when Trump takes office the markets will continue to gain, once trump takes office then it is anyone's guess, for sure it will be more volatile as the market will move with every outrageous Trump tweet.
Stocks are overvalued right now. If they continue to appreciate rapidly, it will be a bubble waiting to burst. NVIDIA and AI have created a huge bubble, and these stocks are priced according to massive growth. Anything less than perfection, and it crash like Netflix did a few years ago.
The magnificent 7 is at ~34 P/E, without the mag 7 the S&P 500 P/E is ~19. If the mag 7 crashes it will have cascading effects but the AI stuff is not funded by debt for the most part so that will put limits on how big of a cascade it will be. I have heard that there are AI companies that are using their Nvidia AI cards as collateral to fund the purchase of more Nvidia AI cards, I do not know how common this is but I assume it is not common. If I am wrong and AI is largely funded by debt then all hell will break loose and there will be no limits to the damage an AI crash will be.
Canada might be a good place to invest until the USMCA is up for renewal in July 2026, 25% of our GDP is tied to US exports, the US dollar is strong so naturally they would import more from Canada. If Trump does put a 10% tariff to all imports then Canada would be hit when the USMCA is renegotiated so for the next 1.5 years Canada could be a great. With that said predicting Trump is impossible, he could put 100% tariffs on Canada without regard for USMCA and we would just have to take it.
Look at what billionaires did. buffet has 285 billion in cash. When Buffet is not investing there is a problem. bezos sold 285 millions of shares recently.
the Trump effect is only short term so big investors can cash out and you will all loose.
the Trump effect is only short term so big investors can cash out and you will all loose.
Musk is in charge of oversight of the very sectors he owns companies in. I don't think it's very likely be strengthened regulations that hurt his own interests. I also think he's clearly got influence over Trump because his fingerprints are all over Trump's cabinet picks, so there isn't likely to be much that hurts his businesses. Even if Trump tariffs things Musk needs to increase his profits, I suspect Musk will convince Trump to give him an exemption.
So my money is in corruption winning out and I'm buying into or fortifying my positions in Musk-owned holdings.
You dont have to wait for Trump for this to happen. I started in UTX, United Technologies about 12 years ago.
It has morphed to RTX, Ratheon.
Stock is up quite a bit recently on an order to make more Patriot missiles.
I actually hold them mostly for their jet engine business.
Not an easy business for any new competitors to start into.
