The markets are pricing in inflation following the Trump US Presidential Election Win. US stocks are soaring to record highs and the Dow is on verge of breaking 20k a major psychological level. Investors should be prepared for volatility as President Trump will counteract a lot of Obama's moves over the past eight years and this could accelerate moves in many markets. Notice already US bonds are breaking down as capital is flowing to riskier assets most notably stocks and recently copper and energy. This is signaling to me inflation, rising interest rates and major policy changes which is already having dramatic effects on the average portfolio. Continue following the tensions in the South China Seas with the recent stealing of the Chinese of a US military drone. Could China have taken that drone to see what rare earths the US in using to power and guide the advanced drones? All the metals which China has control of should be watched and you should get exposure. Focus on rare earths, graphite and other strategic battery technology metals such as scandium, graphite and cobalt. Trump has put in Peter Navarro as a trade advisor with China and the Chinese are already threatening a trade showdown. Hopefully Trump will move fast to help secure our own supply chain of critical metals as that is how the Chinese can squeeze the West.
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Why Trump Will Be Good For Precious Metals and Junior Miners
This strong US dollar in relation to other collapsing currencies has made it very difficult for miners and explorers over the past few years. The dollar is hitting a 15 year high making it very hard and expensive for our mining and manufacturing sector. That could change quickly under Trump as he has already committed to taking on other nations who have been devaluing their currencies to gain a competitive edge with trade.
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