How The Trump Presidency Will Affect Your Investment Portfolio

The events of last night largely met the “Ugly” scenario, and as such The Sevens Report saw a “Brexit-style” reaction as markets traded sharply lower overnight, although notably they are well off those lows this morning.

From an analysis stand point The Sevens Report will focus on immediate takeaways and trying to answer questions financial advisors or investors may have:

Takeaway 1: The Trump victory is not a bearish game changer for markets, at least not yet. From a macro standpoint, The Sevens Report is seeing that “sell first/ask questions later” reaction from markets that The Sevens Report predicted. But, despite the reaction The Sevens Report does not view the Trump victory as a material, bearish game changer and The Sevens Report is not reducing medium/longer term allocations to stocks on the news or market reaction.

The Sevens Report says that for one main reason: Beyond the short term, with total control of government, Trump will be able to enact potential pro-growth policies and the new US government will be business friendly, which longer term is a positive.

Takeaway 2: Does the Trump win imperil a yearend rally in stocks? Yes. To put it lightly, a lot of policy uncertainty needs to be clarified over the coming months. So, from a practical standpoint, that uncertainty means a material year-end rally is unlikely. While some analysts are calling for a Brexit-style bounce following this initial selling, as the market digests Trumps pro-growth policies, The Sevens Report do not see that happening this year (i.e. the remainder of 2016) as there are simply too many unknowns about his policies and the makeup of his administration. From a broad level, until the market knows more, stocks will have a very hard time rallying materially.

Takeaway 3: The Fed may not hike rates in December. Treasuries are down sharply this morning but the longer-term decline in bonds has potentially stalled for 2016, as Advisor Cheat doesn’t know whether the Fed will hike rates in December given this political upset and market fallout. The Sevens Report is not adding to inverse bond positions although longer term the trends of inflation and growth should continue to push yields higher.

Takeaway 4: Gold is a clear winner, and will likely rally until there is more clarity on Trump’s policies, and that’s one of the clear winners of this outcome.

Takeaway 5: Make Sure Advisors & Investors Have a Tactical Hedge in Case this Market Rolls Over. Restricted for Subscribers.

Takeaway 6: Sector Winners and Losers: Restricted for subscribers.

Takeaway 7: Which Two Sector ETFs The Sevens Report Is Buying Today. Restricted for Subscribers.

Takeaway 8: What Makes This A Bearish Game Changer. Restricted for Subscribers.

Having daily, accurate, up to date information on the key leading indicators for this market will be the only way to successfully navigate this environment, and that is what The Sevens Report is going to do for paid subscribers.

For more information, please visit www.SevensReport.com