VRA Update: The Trump Effect

We’re back at it with a full plate of events and news…and what promises to be a very busy end of the year in the markets.Over the last two December-January periods, the VRA has produced “focused” VRA Alert Trades…where I outlined clearly and specifically, exactly what to do. The key point being that you had plenty of time (and advance info) to prepare and execute our trades.

Combined, we booked profits of close to 600%. I tell you this today because I see 2-3 potential trades today…eerily similar…that we may begin taking action on in the next 1-2 weeks. 

The Trump Effect

I am getting information from a number of sources…well-connected…that tell me President Elect Trump is going to shake DC to its absolute foundations. Sure, lots of this #draintheswamp activity will be entertaining…even righteous…but its also likely to cause increased volatility and risk.

Here are some quick-hitters on Trump…as we move forward we will get into these more aggressively, along with how we will profit from them. 

First, some important, if random, Trump observations to date:

-Trump is a master of persuasion & psychology. Perception = reality. Winning=perception. Perception + winning = next 4 yrs. 

-Yes, a new American optimism could take markets to crazy extreme levels (and investors still positioned bearishly) Or...as history shows...markets could tank as high probability recession occurs. Regardless, the moves will be large and sustained. At this point, anyone that underestimates Trump might want to start rethinking their views. The evidence is building for you skeptics…this guy is a winner.

-Might Trump expose the FED and bring markets down 30-50% (he also appoints 4 new FED govs plus the Chair & Vice Chair)? Would a real 9/11 truth commission send an already divided country off the deep end? Might a combination bring social unrest…even civil war? Will the near-immediate outlawing of sanctuary cities mean that states like California begin to encourage something similar to anarchy?

- Remember, after markets finally hit new highs (which just happened) following a full year of not having done so, US markets then gain 10-20% over next 6-12 mo's (on average). 

- Will the bond market vigilantes return…for the first time in 35 years? 

-Have we seen a generational low in interest rates? How high might rates rise and will the increase make it impossible to pay for our obligations?

-Lets not forget the stats on first year of a prez. Recessions and 20-30% market losses are common.

Much to consider. The VRA System will prove more valuable than ever. New trends are emerging…my plan is to ride them to huge gains. Trumpmania is here. 

Kip