Coping w/president elect's shall we say "opinionated influence"

Cuddles

Cuddles

Hoping not to make this political or even know if it's the right section to ask this question.

I've taken positions based on the read off the guy (industrial, financial, transportation, defense). I went long on biotech as Hillary was predicted to lose (hence rhetoric of sector caps were eased) and Trumps more amicable opinions. Yet I'm starting to take hits on the rather bipolar nature of his comments. Now I fear this will happen on other positions I may have taken (financial or aerospace (boeing) for instance), if the rhetoric changes.

Other than subscribing to his twitter feed and shorting/buying based on what he says, I'm not sure if ignoring it and dismissing it as pandering is the best approach. What are your strategies to dealing w/the volatility the lack of tact is introducing? Should l just stay off 'political' stocks?

PS: I'm fairly new to trading and to be fair my biggest hit was back in '15 w/Hillary's and aids drug hike kid.
 
Do stocks usually move based on what some politician says, even if he is the president? If so you could try to guess what he may say and bet on that rather than betting on what he did say. Then you would already be in and just looking for a good place to get out.
 
java said:
Do stocks usually move based on what some politician says, even if he is the president? If so you could try to guess what he may say and bet on that rather than betting on what he did say. Then you would already be in and just looking for a good place to get out.
More...

Down 4% on biotech these last two days (after announcing price caps on drugs). Was hoping to ride back up to pre-Hillary 2015 comment prices after taking a hiding then but it seems like the sector is just too toxic w/politics.
 
Yeah, how can you hope to predict such things as this? For all we know, tomorrow he'll say, "I changed my mind. Biotech profits shouldn't be regulated."
 
java said:
What will he say next?
More...
Are you saying act on what he says rather than what he will say (ie short/dump biotech?). My point right now is I'm not even sure of the sincerity, so going in and out (vs riding it out) gets pricey (with commissions). Is the general consensus to ignore what he says or take it serious?

I'm looking for practical advice more than psychological. Are you guys avoiding 'politicized' stock or domestic stocks altogether and looking at less influenced sectors (international stocks, currency, treasuries, etc..).
 
His opinions change hourly and he never says "I changed my mind", he'll said "I've always said (this)". You're trading on hope.
 
You must log in or register to reply here.
Back
Top