Trump’s Presidency- Stock Market Crash or Start of New Mega-Trends

A little and a little, collected together, becomes a great deal; the heap in the barn consists of single grains, and drop and drop make the inundation. Saadi

Trump’s win proves that mainstream Media is in trouble; it is going to be all downhill from here except for the ones that parted ways and tried to provide accurate coverage of what was going on. The crowd will turn increasingly to social media and outlets that focus on facts as opposed to fiction.

Mainstream media is in for a painful ride as the crowd is not going to forgive them so easily for their transgressions; the only exceptions being the ones that portrayed an accurate image of what was taking place. Many pollsters might have to look for new jobs, and as we just stated, we feel that social media is going to be the biggest winner. Perhaps this is why Google has its eye on Twitter and has decided to donate its search engine business and in doing so take a $1 trillion business write off. 

Google is working with a financial adviser to consider a potential bid for Twitter Inc., as the social-media company continues to explore a sale, according to a person familiar with the arrangement.In tapping Lazard Ltd., Google hasn’t indicated it will definitely make an offer for Twitter. However, the move suggests that Google is evaluating the option, pitting the search giant against other potential bidders including Walt Disney Co. and Salesforce.com Inc. Full Story

No matter how mainstream media tries to spin it, they blew it; it was Brexit on steroids. Trumps win highlights the power of social media and how terribly controlled traditional media outlets are. They misfired on Brexit and grossly over exaggerated Clinton’s lead. It was a stunning defeat and the fact that mainstream media was so far off the mark will now serve as the bedrock to propel social media to levels never seen before. Expect a whole new range of social media apps and sites to emerge that are going to put many newspapers out of business. As the masses grow increasingly suspicious of mainstream media, we believe that social media will be able to provide valuable insights into the mass mindset.  

Being politically correct is now a dead concept

All over the world, the politician that speaks his mind is the one that will resonate well with the public. Those that focus on their P’s, and Q’s will be toast. The crowd seems to agree:

Most Americans (59%) say “too many people are easily offended these days over the language that others use.” Fewer (39%) think “people need to be more careful about the language they use to avoid offending people with different backgrounds.” About eight-in-ten (78%) Republicans say too many people are easily offended, while just 21% say people should be more careful to avoid offending others. Among Democrats, 61% think people should be more careful not to offend others, compared with 37% who say people these days are too easily offended Full Story 

Regulations in the US are going to be torn apart

The Hill, for example, compiled a solid list of “14 Obama Regs Trump Could Undo” that are surely being reviewed by transition operatives.For present purposes, there are a couple categories of rules potentially subject to elimination by the Trump administration. The first consists of already finalised (and often legally challenged) rules, like the Environmental Protection Agency’s Clean Power Plan and the Waters of the United States rule; the Department of Labor’s “overtime rule” and its “fiduciary rule.” Then there is the big one, Obamacare. These are long-discussed items like those in the Hill article noted earlier. Full Story

Obama care will be gutted as in general it is a disaster; “You can keep your doctor” slogan and the steep rise in premiums clearly demonstrate the detrimental nature of this program. Many small businesses were forced to fire workers as they could not afford to pay these premiums. It remains to be seen what will replace it, but for now, the news is being greeted with enthusiasm. Trump’s decision to knock off two rules on the book for every rule created should contribute to creating a more friendly business environment.

The energy, transportations and Banks are just a few of the sectors that will do well. Banks have rallied strongly as there is a wide held belief that Trump’s administration will gut the Dodd-Frank Act. This will pave the way for banks to speculate and that should provide more fuel for one of the most hated bull markets in history.

The trucking sector has rallied sharply, possibly on the expectation that tougher trade deals will be negotiated and the hope is that this will lead to a rise in manufacturing activity. Whether this belief is true or not hardly matter; the rally has gathered momentum after Trump was declared the winner. Markets are forward looking beasts and the long term trend for the transportation sector, and banking sectors have turned positive. BAC and SAIA are two random stocks we picked from the banking and transportation industry to illustrate the strength behind the current rally. Continue to Tactical Investor for rest of the Article