Last week, I asked the following question: How will a Trump Landslide victory impact the markets?
Last week, the media said that the race was close. I didn’t believe that nonsense, and I was correct.
(This is a good time for self-reflection. If you thought there was a chance that Harris would win, you should immediately change your news sources because they were wrong. You were lied to. The result was evident if you were paying attention, as proven by last week’s commentary).
Knowing what would happen, I made sure I was loaded up on the obvious: Bitcoin. Specifically, I maxed out my allocation to MSTR—Microstrategy Inc. It was an excellent play. Here’s the chart:
Nice uptrend, eh?
MSTR is now above the long-term parallel channel that started in February and the higher-sloped channel that started in October.
A pullback at these levels would not be unexpected, but I’m not a trader. Whenever I decide to do a cover call write to lock in some gains, the stock powers higher, so I plan to let it run.
Yes, MSTR could easily pull back to $240, $200, or even the bottom of the channel at $140.
So what?
The trend is obvious.
The new Trump administration will be like the old Trump administration but on steroids. He will print money, and eventually, inflation will return.
Michael Saylor at Microstrategy has announced they will purchase $40 billion of Bitcoin over the next three years. The US government will likely hold on to the Bitcoin they already have and may buy more. Other nations are likely doing the same.
So why fight the trend? Ride the wave, unless you have something better to do with your money.
Enjoy the ride.