Trump’s First News Conference Sets Tone

Today, for the first time since July, President-elect Donald Trump held a news conference. This was his first news conference since being elected President of the United States. Although some concerns and questions were not answered to the extent that many had hoped for, today’s press conference certainly set the tone that one can expect once Trump takes office on January 20.

Based upon his tone and style exhibited during today’s press conference, one might expect a continuation of his brash leadership style, which encompasses a no nonsense approach along with his intrinsic belief of his innate ability to solve many of the problems and issues Americans face. We can also expect to see more of his desire to lash out at factions and media that he adamantly disagrees with. One might also expect to see the similarities between how our next president has selectively processed information, data, and news in the past, and how he might follow that same approach in the future.

Trump’s Market Impact

Based upon what we saw today, it is highly likely that his statements and leadership style will lead to increased market gyrations and inconsistencies. With only nine days until Donald Trump is inaugurated and becomes the 45^th President of the United States, this is to be expected. The increased market volatility will be a direct result of statements made and questions raised as to the new administration’s ability to implement ideas and convert them into policies. Today for example, we saw certain sectors of the US equities markets come under extreme pressure after statements made by President-elect Trump. This is not the first time a Trump tweet or statement has sent a market sector into a free fall and quick recovery.

Today was no different. We certainly saw that increased volatility in today’s market activity. The underlying characteristics that will be prevalent in the US equities markets in the weeks and months ahead will be exaggerated, knee-jerk reactions followed by more sensible interpretations of statements made.

Gold Will Shine Brightly

We also got a real indication of how safe haven assets such as gold will react to his leadership style. Gold, which had been trading under pressure for the better part of the evening session overseas last night, quickly reversed and moved solidly into positive territory, trading up almost $10 intraday before settling up a few dollars higher from yesterday’s close. As such, I believe that it is extremely probable that we will see a continuation of higher gold prices as we get closer to Inauguration Day. His first 30 to 60 days in office, and his ability to convert ideas into policies, will determine where the price of gold goes from there.

Wishing you as always, good trading,