Safe haven gold has dumped over $100/oz in value since the Trumpocalypse. This tells many market watchers basically one thing: Status Quo is the way we go. The systems in place will remain. All hogs will continue to slop in DC and in the Administrative state. No worries. No changes. Ds and Rs are all comfy in their pursuit of your liberty and taxes.
You did know that the price of gold is a CONTRAINDICATOR of optimism and the health of the economy generally? You didn't, did you... Sorry bout that, some advice, stick to big name mutual funds and index funds (no charge and you're welcome).
It's ok your a progressive liberal we don't have any expectations on your understanding of fiscal matters. Carry on good sir!
Gold is what you invest in when you think the economy is going down. The Dow Jones just closed at a record high, and the best week in 5 years. It's early of course but dropping gold prices and a bullish stock market point to high investor expectations. Given Trump's promises they should be optimistic, especially given the last 8 years.
I have always followed the logic that gold is more a reflection of inflation and indicator of expected inflation. You could see rising gold and robust stock market.
Gold is part commodity investment, part emotional investment. Its a gamble, but so is the stock market. The stock market is completely warped and has been since 2008, prices no longer reflect the financial data of a company. Look at Twitter, a company which has lost money every year yet its valued at over $10 billion. What does Twitter do? Allow people to make fools of themselves 140 characters at a time. Or TeslaMotors, lost money (or made a tiny bit) every year, stock valued at $28 billion at an astounding price to book of 28 meaning the company is actually worth $1 billion. What does Tesla do? Make cars nobody can afford without taxpayer subsidies, and preys on peoples green fantasies. Even real companies like Johnson & Johnson have stock prices that are not justified by the company financial sheet. The bottom line is that people are still being driven by emotion, its just "Trump" emotion. People hope that all the huge national problems can be solved without a lot of pain (there will be pain) and this insane stock bubble will suddenly turn into real value without deflating. And no matter what Trump does, the international scene is unstable and a mess and if it collapses (likely) into war and/or economic chaos it will bring the US with it.
