Rickards: Trump Still Wins. Here’s Why...
I first issued a forecast that Trump would win the election before the Oct. 28 announcement by the FBI that the Hillary email investigation was being reopened.
That Oct. 28 announcement gave gold a tail wind, as it increased Trump’s chances of winning, but it didn’t change my basic outlook.
Likewise, yesterday’s announcement that the email investigation is “case closed” did not change my view. But it did hurt the price of gold, as markets revised downward their expectations of a Trump victory.
The two-day drawdown from $1,305 to $1,285 per ounce is a gift in the sense that it offers a better entry point for those who are not fully allocated to gold (I recommend a 10% allocation of investible assets).
Even if Hillary wins, the trend for gold is higher because her fiscal spending programs will lead to stagflation (just like in the late 1970s, when gold soared). If Trump wins, as I still expect, gold should be up $100 per ounce by Wednesday.
Either way, today is “last call” for a good entry point in a rising gold market.
We’ll have to see if yesterday’s FBI announcement influences the election. I’m still predicting a Trump win, like I said, but Hillary could still take it.
If Clinton wins, there will be little or no market reaction. But if Trump wins, the stock market will hit an air pocket and plunge 10% overnight.
This is setting up like “Brexit” in June, where markets were fully priced for “Remain” and hit an air pocket when “Leave” won.
You should prepare for a Trump victory now, because it’s not nearly the long shot that the mainstream media have been saying it is.
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