Trump, Fake News and the Australian Economy.
I sometimes read scary(fake ?)news headlines which are claiming something along the lines of, “Shares safer than real estate” or “real estate prices will bottom out soon”.
And that lead me to start thinking about the election of Donald Trump as well as how facts are presented.
Lets look at the inauguration of Trump.
Obviously, Obama, as the first afro-american had a larger audience at his inauguration and Trump foolishly claimed his inauguration was the largest crowd ever , which it wasn’t.
But sometimes a meme will be played out by the press for a variety of reasons.
Obama’s crowd gathered on a bright and sunny day whilst Trump’s crowd attended on a rainy day.
People don’t like to stand in the rain, and the majority of Trump’s supporters arrived after this photo was taken.
Obama’s audience had more reason to arrive early since they were attending a unique historic event — the inauguration of America’s first Black president.
And security fences set up around the mall had fewer access points, through which everyone had to be screened.
Fewer access points caused it to take longer for the crowds to get through.
This show photo below shows you the crowd that Trump could see, during his speech.
Which is not really the meme that many in the MSM wanted people to see..
Whilst I was watching the newly elected US president Donald Trump, give his inauguration speech, several things occurred to me.
The first was, I would rather a non career politician win, than the ratbags both the US and Australia call career politicians.
And the second thought was, I desired anyone but Hillary to win.
Lets face it, if you cannot even sort out an email server, and blame everything on white males and Russia, it wasn’t ever looking to good for you.
And lets forget the wikileaks revelations as Hillary and co threw good old Bernie Sanders under the bus.
Trump thanked not just the people of the US, but also thanked the people of the world for his election win.
Which was odd..
Maybe he just assumed that people all over the world wanted him to lead the worlds most powerful country ?
He has made a career out of being rude and arrogant in all his initial “negotiations” and then he slowly becomes more reasonable, or so it appears.
Now many of us were happy that he received a lot of negative press, especially just after he won the election.
But what effect, if any, did Trump have on the markets ?
The S&P 500 index, is a broad measure of the performance of most of the huge US companies, and climbed around 6 per cent since election day.
Wall Street has not posted such a strong run from a president’s first-term election win in more than half a century, when the S&P 500 climbed more than 8 per cent after JFK beat then vice-president Richard Nixon.
Bloomberg claims global equities have risen $2.5tn in value since the election, with US stocks alone adding $1.6tn in their market value.
Australians are possibly, accidental collateral winners from the recent Republican victory in the US elections.
Some here call it the Trump gift that keeps on giving and it might be worth billions to our economy.
Trump’s policy centrepiece is to spend $1 trillion to rebuild America’s infrastructure which signals a massive increase in demand for commodities like our iron ore and coal.
The price of Iron ore our basic and seemingly endless and largest export – has soared to almost US$75 a tonne which is almost double where it was at the start of the year.
It has gained more than 8 per cent in just the last few days.
According to Australian government’s budget papers, the effect in 2017/18 of a change in the iron ore price alone is huge, with every $US10 a tonne change impacting tax receipts by $3.9 billion and nominal GDP by $13.4 billion.
It is true that we do not supply the US with coal or even our iron ore, but we cannot get around the fact that the global demand for these commodities will rise thanks to Trump’s big infrastructure plans, which leads to global price rises.
And more Americans are now turning to the Australian property market following Donald Trump’s election win !
Based on results from realestate.com.au, Sydney was the most searched Australian city(of course)followed by Adelaide and Melbourne.
Most of the searches came from Clinton strongholds – New York and California, but Republican strongholds like Texas ranked third closely followed by the key election state of Florida.
“The number of searches from US IP addresses also spiked in the lead up to the US election”
REA Group Chief Economist Nerida Conisbee
“During the three days leading up to the election, realestate.com.au had an increase of 21% in number of searches made by the US compared to the same time last week.” source
“For Australia, the fallout from the election result is all about confidence and sentiment. Buying, selling, investing and consuming are all driven by confidence. The more confident you are with the security of your own income and the destination into which you want to invest, the more you are likely to do so,” LJ Hooker head of research Mathew Tiller .
In summary..
Investing in Property in Australia Trumps any other form of long term wealth creation strategy !
Having a team like Ample Property Solutions, doing all the hard yards and research, using our in house staff and experts from all around Australia, Trumps doing the research by yourself !
Contacting us today, about your future, Trumps inaction !
No Trumps were hurt during the making of this post.
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Our next free property seminar in Sydney !!