New Podcast: Gold and the Stock Market After Trump's Political Pivot - David Skarica (04/14/2017)

David Skarica of has just launched a new podcast called International Contrarians.

I was honored to be his first guest on the podcast.

We talked about the current market action, Trump's political pivot, and the rise of gold stocks.

It is easy to get caught up in partisan thinking and simply worship one party and the other. Voting is one thing, but making money in the markets is another. We are in times of political instability and investing is not about having the right political beliefs, but adapting to changing realities.

That means understanding what is happening and not just cheerleading or bashing in order to feel smug.

The reality is that the past two weeks has seen big changes with the Trump administration.

They are making some Trump supporters angry:

Trump’s base turns on him - Politico

We have seen the diminishment of the Bannon element in the Trump admin and rise of importance of Goldman Sachs agent Gary Cohn and son-in-law Kushner along with the Pentagon.

A big turning point was the Syria strike, but just as important for us as investors was Trump's interview with the Wall Street Journal on Friday.

It was a bombshell in which he pledged allegiance to Janet Yellen and easy money Fed policies!

This totally repudiated many of the economic advisors he had around him during his transition period and campaign statements and so gold went up this week.

The Trump style is not going away and many people like that style, but he is moving to the center now - for better and worse.

This of course is getting him praise on TV which had been bashing him nonstop.

Even MSNBC gushed over Trump's Syria strike.

Thursday's top news stories were dominated by the WSJ interview, which for the financial markets is huge:

S&P 500 ends below 50-day moving average for the first time since Nov. 8 election - MarketWatch

Gold Pops On News Trump Says U.S. Dollar Is Too Strong -

Trump Liking Yellen Ignites Prospects for Fed Policy Continuity - Bloomberg

Trump reinforces turnaround on Syria and Russia - The Hill

New Trump Admin Begins: Trump Flips On Five Core Campaign Promises In Under 24 Hours - Zerohedge

Trump backs off fiscal pledges and adopts centrist policies that he once fought - WAPO

CEOs gaining power in Trump’s White House - Politico

Robert Rubin, Who Made a Fortune on the Housing Bubble, Argues for Preserving Wall Street's Power Over the Fed - CEPR

Trump's message to bankers: Wall Street reform rules may be eliminated - Reuters

Russia Faults ‘Ambiguous’ U.S. Policy Before Tillerson Talks - Bloomberg

As far as foreign policy goes one massive Trump pivot was China. During the campaign Trump talked about launching tariff wars against China and said they are "raping" the US.

He now says China is great.

I talked in detail about why this happened in an interview I did on The Ochelli Effect.

China Communist Party leaders are very clever and they in fact used the Trump family and had them make propaganda videos for their own people.

Following the summit Chinese papers across their nation displayed this photo of Trump deferring to Xi:

And then this one:

One student of Chinese politics wrote of this photo, "Here is Xi, a visitor to Trump’s estate, guiding the American President as a guest, showing him something, rather than the other way around. Xi’s pointing—or at least gesturing—and getting Trump to look where Xi wants him to look. Trump's moving in one direction and Xi is presented as signalling him to move in a different one. It’s Trump paying attention and therefore being portrayed as at least acquiescent."

But it is the videos made before the summit you gotta see.

To listen to the Ochelli Effect interivew and see these videos go here.

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