The Stock and Gold Markets' React to Trump Victory

November 9, 2016

I welcome the election of President-Elect Donald Trump with great excitement. This is the first time in history that we have had a president who was not shackled by having to please the political establishment. Not even Ronald Reagan had this freedom. He was forced to place people in key positions in his administration who compromised his conservative agenda. We may have the first true conservative government in history.
The economic significance of this cannot be overstated. Investment Grade Gold had its biggest bull market in history during the Reagan years. This historic election could not be more timely. The time to get out of paper and into Gold is now!
In an email I sent yesterday I mentioned the reaction we could expect from the markets if the establishment candidate did not prevail. This was because the markets expected Hillary Clinton to win, and they knew what they could expect from her. I was up until 2:30 AM monitoring two things simultaneously: The election returns, and the reaction of the markets.
Early in the evening the prevailing “wisdom” was that Clinton would be the victor. But as Trump won more and more states the Wall Street special interests and the international bankers realized that they were going to lose influence and control. Trump, a billionaire, had not taken their money as other politicians did – so he was beholden to none of them.
In reaction to the new reality, stock market futures dropped by 4% - a huge decline. Amazingly, Gold futures ROSE 4% (about $50 an ounce) at the same time. By the time the markets opened they had normalized, and Gold lost much of the “panic gains.” But the trend had been established. The most reliable experts I follow are predicting Gold will continue to rise in reaction to the Trump win. Two articles from trusted sources predicted Gold to rise to $1,850 and $1,900 respectively in the near term.
Of course, there are always differing opinions on any issue. There are two reasons I believe a major shift has taken place. First, the sheer number of articles and experts that are bullish on Gold. Second, the quality of those expert opinions. For instance, John Paulson, who has made billions buying Gold, has called for it to hit $4,000 long-term. Likewise, Jim Sinclair, who has been remarkably prescient in calling the rise and fall of Gold for decades, says it will go to $5,000 long-term – even without a stock market crash.
If you feel led to protect some of your assets using Precious Metals, feel free to call me with any questions. I would be happy to send you information, including the video “Why Investment Grade Gold is Better than Bullion.” Remember that ordinary bullion is not an investment. It is good for “insurance” (protection from inflation) but it does not produce real profits, since it only goes up as the dollar drops. Investment Grade Gold, on the other hand, provides both protection AND profits. In fact, it has historically gone up seven to eight times as much as bullion.
Finally, if the experts are right, you need to protect assets in Gold as soon as possible. It just makes sense to get Gold before the price rises more.

I can be reached at DrTomBarrett @ or 561-753-5998
Copyright ©2016

Dr. Tom is a pastor, teacher, author, conference speaker and marketplace minister. He has been ordained for over 40 years, and has pastored in seven churches since then. Today he pastors pastors as he oversees ordained and licensed ministers in Southeast Florida for his ministerial fellowship. He speaks internationally concerning Biblical finance in churches, conferences, colleges and financial events. His passion is teaching, as you can see from this website, his business site ( and his patriotic site ( 
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