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What to do about Trumps warning about the midterms

“You’re all going to lose a lot of money” – Donald Trump

Trump said today that “You’re all going to lose a lot of money”¬† if you don’t vote republican this 2018 midterm election. In case he hasn’t been paying attention, people have been losing money in the market while republicans are in control right now. Trumps tariffs aren’t benefiting anyone, and the tax cuts really haven’t created the promised trickle down effect either. Did anyone really think they would? Really?

The money will flow in the winners direction

What he means is that if you vote against him and the GOP, the market is going to tank. Maybe it will and maybe it won’t. Markets do get uneasy when political change is happening. So, what to do?

If you think Trump and the republican party is going to get spanked this mid-term, short republican favored sectors, and go long democrat favored sectors. The money has to flow somewhere, and it will flow to where the winners are.

What to do about Trumps warning about the midterms 

Off the top of my head I would short oil and gas and coal, and go long infrastructure oriented companies, environmentally friendly companies, the movie industry, the auto industry, and education.

If you don’t want to take either position now, wait for the election results on November 6th. You’ve got some time to plot your course.

coach

John George Campbell is the author of the book Stock Market Baseball, about how John increased the value of his trading portfolio 500% one year, and followed that up with a 200% gain the following year, on assets traded. Those results were tied directly to John teaching himself technical anaylsis, and for taking a small ball approach to trading. Like winning in the game of baseball by hitting for lots of singles and doubles, and the occasional home run.

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