Being Right Helps

Consistent Planning Mmakes That Possible

Just because I am quiet doesn’t mean I’m not acting on opportunities that come my way. If you have been following my posts, you will understand the tenor of this article. When possible, I do as little as possible. It’s just the way I work; less is more.

My portfolio management concerning managing Roth IRA requires listening, reading, and reacting to everything I hear. I watch and listen a lot and you should too. Early on, I saw that Trump held the voter’s edge against Biden and then Harris. That fact hasn’t changed. It has only strengthened.

Three points came to mind and then came to fruition. It made sense based upon past polling performance versus what we’re seeing today. Trump liked tariffs. They work better with a stronger dollar. Trump favored cryptos. He also believed that oil offered the key to fighting inflation. Nothing’s going to change quickly given a Trump victory and those thinking it will need to read further.

Tariffs

Tariffs are negotiation tools. Over the past few months, the dollar has tested its “100” level and bounced back higher. That makes sense as the world’s lowering interest rate amounts in a logical and formatted manner. As long as that keeps happening, dollar rates will hold their own, and actual tariffs will work better for all.

Keep in mind, however, that tariffs are negotiation tools that “force” entities to abide by the “rules”. What does that mean? On the surface, those who abridge the rules are the targets. It does not mean that the proposed tariffs will ever gain any recognition. It simply means that they are the targets of what will become the discussion points.

Trump wants the USA to become the manufacturer of products, not simply the user. I see where he is heading, especially when tariffs deal with China and Europe. I can see where Trump is going to place huge tariffs on both regions to illustrate his position. I can also see where selectively, Trump is going to force companies to build products in the USA using higher tariffs to balance the scale.

Tariffs, with a stronger dollar, minimize the inflationary risks. Tariffs, as negotiation tools, will force worldwide entities to react and, quite often, build products here in the USA. It makes sense to me. How about you?

Cryptos

It’s not that the Trump kids are heading in this direction, more so, it’s the fact that it’s time for the world to adopt crypto. I’m a hedger, and a few months ago, I started being a hedger in this investment arena. I was “vociferously” told by many that I often read and respect that I was dead wrong. As a matter of fact, I received direct emails from a few of you that questioned my actions. Who’s laughing now?

I started buying Microstrategy (“MSTR”), about 100 points below where it is trading today. I’m up 75%+. Bitcoin is up slightly less than 25% during the same period, so I guess my hedge was the correct one. I wanted crypto to make up a couple of percent of my total portfolio. Right now, with the increased stock price, it makes up more, but I’m not changing anything.

I’ve watched crypto for years. I’ve made a. small fortune a couple of times, but more than not I’ve sat on the sidelines until now. Trump is giving crypto the true reality it deserves and his victory will only push it higher. I’m in to stay. How about you?

Drill Baby Drill

A Trump administration will bring back lower gasoline prices. It will reopen many of the pipeline and drilling projects the current administration canceled. Fracking will be a norm and liquified natural gas will thrive.

It’s simple and not very difficult to manage. I’m happy with my stock hedge but will realize there’s more to watch. With that in mind, I’m taking a hard look at a nuclear entity, Constellation Energy (“CEG”). While I wish I had thought more about this a while ago, even at today’s higher price, it’s a welcome addition.

Netflix & The Trade Desk

A quick bonus and recap of simple success. I do not see anything getting in the way of Netflix (“NFLX”), and the higher it goes, the Trade Desk (“TTD”) will follow. The time is right for profits, especially in the “blue wall” states but more so, streaming is ‘king.’ It is only going to get stronger and the Trade Desk owns and controls the industry.

I’ve been in and out of this stock for years. I’m back in TTD with around a 35% return since early August. I have a trailing stop in there and have been selling naked puts all the way higher. It’s going higher, how far, I do not know but being the “best of breed” it belongs in every portfolio.

The Beatles were right years ago. Here comes the sun, and its name is Donald Trump. I am actually glad we had a dose of the Democratic party over the last few years. They had no chance of success, and their inability to take responsibility for their errors is a great way to confirm failure. Trump and the Republicans have their hands full. Hopes to control the Senate and the House are critical. I’ll be watching the returns on the 5th of November to see what the voters think. How about you?