In the financial world, different markets are correlated more tightly than most people anticipate. It is also evident how one single individual can effectively influence markets to move in certain directions, either knowingly or by accident. When President Trump Tweets weird stuff, the markets do indeed respond in mysterious ways.
Gold Inches Ahead
Back in September of 2012, Donald Trump claimed how the Obama and Bernanke team was effectively destroying the value of the US Dollar. It is certainly true this currency has had a few rough years in the wake of the 2008 financial crisis. Then again, this goes for most currencies and even non-currency financial markets, which all saw a bloodbath in one way or another.
When fast forwarding to the current era, it is evident his claim of how “gold will rise in value” did not exactly pan out as planned. Although bullion gained over 30% in value since that memorable Tweet, it is not exactly the performance people had hoped for. Even so, it is still better than noting a net loss, although one has to wonder if gold were ever to turn mega bullish again. Surpassing a value of $2,000 per ounce seems rather unlikely.
Real Estate is an odd Bubble
Along with gold, Donald Trump expected the value of real estate to soar to very high levels in the years ahead. While this industry has recovered its value as well, the overall gain of over 55% is not necessarily too impressive. Then again, real estate is still widely considered to be in some sort of bubble right now, and prices could come crashing down again sooner rather than later.
Stock Markets Recover Significantly
Whereas Donald Trump did not call out the stock markets in his Tweet at that time, it seems that is perhaps the biggest mainstream gainer following his comment. With a pretty solid increase in value on average, it would appear the stock market is looking healthy again.
As is always the case with that particular industry, the volatility is never far away. Stocks are still fluctuating quite wildly, which allows traders and speculators to make a fair bit of money in the process. However, not all companies will be able to sustain their stock valuation which could make for an interesting second half of the year 2019.
Bitcoin Trumps Everything Else
Most current cryptocurrency enthusiasts were not even interested in Bitcoin when Donald Trump made this Tweet in 2012. That is not entirely abnormal, as the value per BTC was negligible compared to what it is today. To date, it would appear the value per BTC has increased by factor 900, resulting in a 90,000% gain in just under seven years.
One has to keep in mind this is despite going through multiple bearish trends since 2012, including the previous one which lasted nearly 18 full months. It only further confirms Bitcoin is by far one of the most resilient markets, even though many financial experts will gladly claim otherwise. It seems highly unlikely Trump wanted to push Bitcoin’s value higher with his comments, yet the numbers do not lie. How much of that is due to Trump’s opinions, however, is a different matter altogether.
Disclaimer: This is not trading or investment advice. The above article is for entertainment and education purposes only. Please do your own research before purchasing or investing into any cryptocurrency or digital currency.
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