Everyone was of the view that Clinton will win the election.
But as I wrote in my previous blog post that there is a big chance that Trump will win the election, and he did.
This surprised many.
Markets are always wrong as said by George Soros.It seems like this hypothesis always works.Remember Brexit.Everyone anticipated that Brexit will not happen.But it did happen.
The day before the day of the election, the market was positive and the price was discounted for a Clinton victory.
But unfortunately, Trump won.
On the home ground, big changes are being made to curve the menace of black money.On the same day of Trump victory, the 500 and 1000 rupees notes lost its legal tender.
Those who were hiding cores in their cupboards lost their sleep.Seems like Narendra Modi the ‘chaiwallah’ is rocking.
The market was down 500 points(NIFTY) on the day of election results.But gradually it closed higher negating the change.Yesterday the market was so positive like the stock market veterans wanted Trump to win the election.
Some news channels said that the market is optimistic about Trump.Others said that there will be no Fed rate hike in December with Trump as the president.
Just because the sentiment of the market was positive yesterday, lots of news with no basis started to pour in.
Now today when the market cracked, the same news channels were found to be saying ‘Trump don’t like Janet Yellen as he said in his speech.Might be Yellen will hike the rate before leaving her position’
I don’t understand how the so-called experts give their views based on the price change.
Whereas in reality, there was no basis for the markets to bounce back after Nifty cracked to over 500points.
Then why did it bounced back?
It bounced back because of heavy short built up and successive short covering.I described short squeeze in my article ‘All about short selling stocks‘. Same thing happened.Everyone booked profits and the prices kept on going up until yesterday.
But today the actual effect of Trump winning the election was seen.Nifty closed close to 8300 level.
I already warned my readers that stock market might crash all of a sudden.I also asked readers to book half of the profits about one month ago.
Those who have done so based on my recommendation are in a better place now.They can sleep peacefully.
According to me, the markets will keep on trending downwards and a major correction will take place.
Trump as a president is good for America but not for India or any other country.Today in the world of globalization, free flow of capital and manpower takes place.
This lead to companies outsourcing their manpower from other countries as it is cheaper.But Trump doesn’t seem to like this.
He doesn’t like the idea that American companies are giving jobs to so many Indians.Whereas in America, there are so many jobless people.
He promised all these will end up after he becomes the president.
No doubt the American people were frustrated about their present situation.And so they made Trump win.Just like Brexit.
It is good for the Americans, not for India.Last day I was seeing a show about Trump.
Everyone said that he does what he says.
So a Trump win is definitely not good for India and the Indian Stock Market.