I know the media says the election is “too close to call,” but from my point of view in Canada, it appears that Trump is headed to a big win. Why? Because, for the average American, the economy sucks. That’s it. It’s that simple.
Yes, I know, the stock market is at record highs, and over the last few years, real estate prices have gone way up, but that only helps if you own stocks or real estate. If you are a renter and have debt, not investments, inflation is a killer.
If you make $200,000 annually, you spend 1% of your income on food. (I made that number up; feel free to adjust as you see fit). If you make $2,000 monthly, you might spend 25% of your after-tax income on food. Food prices have been up 25% over the last four years (and your wages haven’t), so for the people at the lower end of the economic spectrum, inflation is a killer.
So it’s great that all of the celebrities are endorsing Harris, but that irritates the average dude even more, which is why Trump is headed for a landslide.
But wait, you say. He won in 2020, but they stole the election from him and they will do it again!
Perhaps.
I find it amazing that they use voting machines. Since every computer can be hacked, pencil and paper seem like a better system.
In Canada, you get a paper ballot, mark your X, and at the end of the night, the boxes are opened in the presence of scrutineers for each candidate, and the ballots are counted. It’s hard to cheat in such an open process.
But in the USA you are not just voting for your local candidate (in Canada we don’t vote for the Prime Minister). You are voting for a senator, congressman, district attorney and dog catcher, so the ballots are long, so electronic tabulation makes theoretical sense. But unless the machines are “locked down,” the possibility of fraud is there. I guess the winner will be whoever can cheat the most. We’ll see.
But back to the question: what happens when Trump wins?
We know the answer because we’ve seen this movie before. He will lower taxes and increase spending, which will cause inflation. He will increase tariffs, which will also cause inflation. He will cut immigration, which will increase wages and cause inflation.
All roads lead to more inflation.
So, the trade is to protect yourself against inflation. Buy gold, Bitcoin, and hard assets.
Check back next week and see if I look like a genius or an idiot.
How will a Trump Landslide Victory Impact the Markets?
by JDH on November 2, 2024
I know the media says the election is “too close to call,” but from my point of view in Canada, it appears that Trump is headed to a big win. Why? Because, for the average American, the economy sucks. That’s it. It’s that simple.
Yes, I know, the stock market is at record highs, and over the last few years, real estate prices have gone way up, but that only helps if you own stocks or real estate. If you are a renter and have debt, not investments, inflation is a killer.
If you make $200,000 annually, you spend 1% of your income on food. (I made that number up; feel free to adjust as you see fit). If you make $2,000 monthly, you might spend 25% of your after-tax income on food. Food prices have been up 25% over the last four years (and your wages haven’t), so for the people at the lower end of the economic spectrum, inflation is a killer.
So it’s great that all of the celebrities are endorsing Harris, but that irritates the average dude even more, which is why Trump is headed for a landslide.
But wait, you say. He won in 2020, but they stole the election from him and they will do it again!
Perhaps.
I find it amazing that they use voting machines. Since every computer can be hacked, pencil and paper seem like a better system.
In Canada, you get a paper ballot, mark your X, and at the end of the night, the boxes are opened in the presence of scrutineers for each candidate, and the ballots are counted. It’s hard to cheat in such an open process.
But in the USA you are not just voting for your local candidate (in Canada we don’t vote for the Prime Minister). You are voting for a senator, congressman, district attorney and dog catcher, so the ballots are long, so electronic tabulation makes theoretical sense. But unless the machines are “locked down,” the possibility of fraud is there. I guess the winner will be whoever can cheat the most. We’ll see.
But back to the question: what happens when Trump wins?
We know the answer because we’ve seen this movie before. He will lower taxes and increase spending, which will cause inflation. He will increase tariffs, which will also cause inflation. He will cut immigration, which will increase wages and cause inflation.
All roads lead to more inflation.
So, the trade is to protect yourself against inflation. Buy gold, Bitcoin, and hard assets.
Check back next week and see if I look like a genius or an idiot.