Discover how the U.S. stock market reacted to the seismic shift in political leadership following Donald Trump's recent election victory. With promises of tax cuts, deregulation, and infrastructure spending, investor confidence soared across sectors like banking, manufacturing, and energy. We try to unpack why these policies sparked such enthusiasm and how small-cap stocks and digital currencies like Bitcoin capitalized on this wave of optimism. However, amidst the euphoria, we also explore the potential for future market corrections and uncertainties, while considering the broader implications for domestic manufacturing and the global economic landscape.
00:00:02.865 --> 00:00:17.733 If you had money in the stock market on November the 6th and you just left it there the US stock market and you did nothing and you cashed out, let's say, around November the 8th, I could swear you probably had one of the greatest days of your life in terms of an investment.
00:00:17.733 --> 00:00:19.786 But what happened on November 7th?
00:00:19.786 --> 00:00:23.789 Oh yes, the election of Donald Trump.
00:00:23.789 --> 00:00:24.431 That's right.
00:00:24.431 --> 00:00:35.945 On November the 8th, donald Trump was elected president of the United States, officially at two something in the morning, and on that day, the stock market went up like a rocket ship.
00:00:35.945 --> 00:00:38.087 What the heck happened?
00:00:38.087 --> 00:00:40.029 What did the stock market know?
00:00:40.029 --> 00:00:44.533 What did the stock market anticipate that people are still poo-pooing.
00:00:44.594 --> 00:00:45.956 Ladies and gentlemen, welcome to the Ratt Network.
00:00:45.956 --> 00:00:48.847 I am David Salk, he is Stuart Frisgall.
00:00:48.847 --> 00:01:04.224 We are the Ratt Network, where we bring you unedited, uncensored, unfiltered, un-everything conversations about a wide variety of topics, which includes latest news, pop culture, politics, so much more, including I'm going to get into money today something we haven't really talked about in quite a long time.
00:01:04.224 --> 00:01:08.811 Okay, this is all about the absurdity of modern life, discussions about deeper issues affecting society.
00:01:08.811 --> 00:01:12.855 Folks, buckle up, because we're not going to give you a financial lesson.
00:01:12.855 --> 00:01:20.343 We're just going to talk about a reflection of what has gone on since November the 7th.
00:01:20.364 --> 00:01:31.844 Now let me, for those of you who do not invest, or for those of you who weren't really paying attention, which was a little bit surprising Last week, as we know, donald Trump was elected president of the United States, president 47.
00:01:31.844 --> 00:01:39.364 And what ends up happening is that the stock market has the greatest day of growth in its history.
00:01:39.364 --> 00:01:42.890 The S&P in one day, two and5% up.
00:01:42.890 --> 00:01:46.394 That's remarkable in one day.
00:01:46.394 --> 00:01:48.346 People don't do that in a year.
00:01:48.346 --> 00:01:51.448 The market did it in one day.
00:01:51.448 --> 00:01:57.293 Now you will have media pundits who will tell you that the stock market has nothing to do with presidential elections.
00:01:57.293 --> 00:02:04.087 That's a bunch of bull, because the stock market reacts to politics, to political trends.
00:02:04.087 --> 00:02:07.754 But, more importantly, what is coming up in the future?
00:02:07.754 --> 00:02:10.969 Stuart, you, by trade, are a financial advisor.
00:02:10.969 --> 00:02:12.646 You help people with their money.
00:02:12.646 --> 00:02:14.586 We're not here to give stock tips today.
00:02:14.586 --> 00:02:15.603 We're not here to talk about.
00:02:15.603 --> 00:02:17.209 You know where to invest.
00:02:17.209 --> 00:02:21.411 But the question is why did the market react the way it did?
00:02:22.861 --> 00:02:24.949 You know that's a great question, david.
00:02:24.949 --> 00:02:33.930 The market reaction was primarily driven by investor optimism about Trump's proposed economic policies.
00:02:33.930 --> 00:02:46.401 His policies are promises of tax cuts, deregulation and infrastructure spending created a surge of confidence, particularly amongst business investors.
00:02:46.401 --> 00:03:12.129 You've got to understand that in the world of finance, a Democrat and a Republican both make the same amount of money and lose the same amount of money based off of what happens and I know a lot of very happy Democrats on leading up to November, to November the 4th, because the drive and the push and the numbers.
00:03:12.129 --> 00:03:22.182 If you really study the numbers, you would understand that the prediction of Donald Trump winning was on the wall in the weeks leading to it.
00:03:22.644 --> 00:03:26.393 You know financial industry saw a sharp uptick.
00:03:26.393 --> 00:03:31.312 You know deregulation favors banks and manufacturing.
00:03:31.312 --> 00:03:35.790 Energy stocks rallied because interest rates are going down.
00:03:35.790 --> 00:03:39.751 They're the most leveraged organization on the market.
00:03:39.751 --> 00:03:43.740 He indicated he would roll back environmental regulations.
00:03:43.740 --> 00:03:46.705 That promotes what Fossil fuels.
00:03:46.705 --> 00:03:51.812 He said he would remove the tax credit from EVs.
00:03:51.812 --> 00:03:56.611 Well, that means the money isn't being spent there, which means it's not coming out of your pocket.
00:03:56.611 --> 00:04:08.376 Also, additionally, small cap stock like the Russell outperformed because they stood to benefit most from domestic focused tax cuts.
00:04:11.883 --> 00:04:16.353 There was some uncertainty and there is definitely going to be some uncertainty going forward.
00:04:16.353 --> 00:04:23.767 And what we saw happen in 2016 doesn't mean it's going to happen in 2025.
00:04:23.767 --> 00:04:26.632 Doesn't mean it's going to happen in 2025.
00:04:26.632 --> 00:04:28.553 So, again, this is a push in the market.
00:04:28.553 --> 00:04:37.781 It's optimistic and we're going to call the term a Trump rally.
00:04:37.781 --> 00:04:51.692 But you know, again, there's a lot of corrections that have to occur and these corrections are going to have pullbacks and setbacks because, unfortunately, you already hear King Jeffries trying to obstruct the Republican push.
00:04:51.692 --> 00:05:01.422 You know, if the majority of the country wants change, why do people want to insist no change?
00:05:01.422 --> 00:05:17.569 The market loves the fact that there is going to be a push for domestic manufacturing that increases jobs, increases spending by keeping more money in America and not shipping our dollars, like petrol dollars, out to other countries.
00:05:17.569 --> 00:05:21.836 We're financing ourselves and not financing other countries.
00:05:21.836 --> 00:05:23.983 People don't get it.
00:05:23.983 --> 00:05:30.163 The clear air, the clean land Listen, these are true statements.
00:05:30.163 --> 00:05:32.747 No one wants a polluted country.
00:05:32.747 --> 00:05:36.615 However, the world is one.
00:05:36.615 --> 00:05:47.055 So what you air pollute in China, it affects you here at home, whether home is in Montreal or whether home is in the United States.
00:05:47.055 --> 00:06:09.144 You know the Federal Reserve is now acting after being stubborn on cutting interest rates, and you know there's a lot of thought that the Fed seems to interfere more and not resolve problems because, you know, the free markets have a way on correcting themselves and in the last rush, from 2016,.
00:06:09.144 --> 00:06:16.682 The little guy made the most in history, believe it or not, not the big guy.
00:06:16.682 --> 00:06:19.629 The big guy makes money, no matter what Large numbers.
00:06:19.629 --> 00:06:24.163 They can take more risk, but the little guy made money, you know.
00:06:24.283 --> 00:06:32.055 Pre in the green room, david, you talked about, you mentioned the word Bitcoin, or coins in general, digital currency.
00:06:32.055 --> 00:06:37.168 You know this is an anarchist instrument and that soared as well.
00:06:37.168 --> 00:06:49.889 I'd say not so much that Donald Trump is in office, but the instabilities that are going to be created as a result of law and order and accountability on a world stage.
00:06:49.889 --> 00:06:58.153 Countries like Venezuela, iraq, iran, india, pakistan, russia are all on notice.
00:06:58.153 --> 00:07:06.067 China and people are going to move assets to assets locations that they feel are safe.
00:07:06.067 --> 00:07:13.442 Again, digital currency isn't a store of value by definition.
00:07:13.442 --> 00:07:15.557 It fluctuates 30%.
00:07:16.071 --> 00:07:24.838 Now David told me and I promised him I would not be a teacher today and try and give you what I feel about this.
00:07:24.838 --> 00:07:27.177 You know you got to be prudent.
00:07:27.177 --> 00:07:29.016 It's the end of the year.
00:07:29.016 --> 00:07:34.769 It is the biggest, as you said bull in history right In a single action.
00:07:34.769 --> 00:07:42.773 That means people are likely to take profits off the market, which will give the impression of possibly a pump and dump.
00:07:42.773 --> 00:07:44.536 The market is blowing up.
00:07:44.536 --> 00:07:47.690 People are going to want to take money off the table.
00:07:47.690 --> 00:07:49.533 Look at Warren Buffett.
00:07:49.533 --> 00:08:02.079 He cleared the fence of how much money leading up to the election and went what 50% into cash based off of his last filings, so that money is going to be deployed somewhere.
00:08:02.910 --> 00:08:19.997 I would bet betting on a US company and US manufacturing might be a strong bet, but don't cut out what's going to happen with Europe and the wars that are looming throughout Europe, as much as the left would have.
00:08:19.997 --> 00:08:25.894 You believe that Putin is Donald Trump's or sorry, donald Trump is Putin's puppet.
00:08:25.894 --> 00:08:29.377 Don't fall for the narrative.
00:08:29.377 --> 00:08:32.621 The narratives aren't going to treat you well.
00:08:32.621 --> 00:08:40.698 They never do and it's sad to say that you shouldn't take risks that you're not able to take.
00:08:40.698 --> 00:08:42.822 Be long in the market.
00:08:42.822 --> 00:08:44.092 Don't be short-sighted.
00:08:44.092 --> 00:08:49.090 Look at what we have to gain by being more united than we are being more divided.
00:08:49.090 --> 00:08:54.210 At the end of the day, david, we are all Americans or we're all Canadians.
00:08:54.210 --> 00:08:56.094 We're all members of the world.
00:08:56.094 --> 00:09:11.374 If the United States gets a cold, canada gets pneumonia, I'm sorry to say, and in history, only twice before has that statement not been true, and that was just as Donald Trump.
00:09:11.374 --> 00:09:19.985 When we saw the currency rise above the US dollar going back into the 70s, I think it eclipsed the dollar for a day or two.
00:09:20.529 --> 00:09:26.043 But, david, you know there's a little brief step, not really political banter more finance.
00:09:26.043 --> 00:09:36.054 You know, again, those Democrats and those Republicans loved what their 401k looked like on November the 5th and you know what.
00:09:36.054 --> 00:09:38.235 They seem to still be liking it.
00:09:38.235 --> 00:09:41.241 Because today, you know, the market's taking a bit of a break.
00:09:41.241 --> 00:09:52.224 We're coming up to a holiday week here in the United States called Thanksgiving, and that normally peter stings down Again, pay attention, again, pay attention.
00:09:52.224 --> 00:10:01.649 People start at Thanksgiving adjusting their portfolios to capture their losses or try and sell their gains for tax purposes.
00:10:01.649 --> 00:10:06.923 So again, what happened the last two weeks may not continue.
00:10:06.923 --> 00:10:10.769 Remember be smart with your money, david.
00:10:11.955 --> 00:10:13.260 Thank you for that infomercial friend.
00:10:13.260 --> 00:10:17.076 But listen, guys, I don't know if you caught this, but it's late october.
00:10:17.076 --> 00:10:28.273 You know there was a letter sent out by 23 prominent economists, ladies and gentlemen, that said that the harris economic plan was way better for america than what donald trump said.
00:10:28.273 --> 00:10:36.136 Their claim was that at the time, that the Trump's tariffs and tax policies were inflationary and likely to balloon the federal deficit.
00:10:36.136 --> 00:10:41.715 Now I find that ironic, considering that Kamala Harris and Joe Biden did exactly that.
00:10:41.715 --> 00:10:44.019 You know, you will see that there is a.
00:10:44.019 --> 00:10:50.562 You know the Democrats have took a victory lap by saying you know, are you better off than you were four years ago?
00:10:50.562 --> 00:10:51.530 Look at the stock market.
00:10:51.530 --> 00:10:58.850 The stock market is a Joe Biden, you know result because Joe Biden, his policies, made the stock market grow.
00:10:58.850 --> 00:11:05.231 Well, if the political people want to tell you that, then what do you say about the Trump effect?
00:11:05.231 --> 00:11:09.533 So I'm not saying that they're right or they're wrong, but you can't talk from both ends of your mouth here.
00:11:09.533 --> 00:11:14.392 So is it a Trump effect or is it net Harris effect that she lost?
00:11:14.392 --> 00:11:22.291 Listen, I know that he is a big pusher of he wants to push tariffs, tariffs, tariffs, tariffs.
00:11:22.291 --> 00:11:31.611 And these economists are saying if you slap tariffs, we will have crazy inflation, and I get that and I understand that.
00:11:31.611 --> 00:11:32.513 That's what's going to happen.
00:11:32.513 --> 00:11:37.937 But let's be very clear Chinese manufacturing.
00:11:37.937 --> 00:11:51.668 Chinese have come in and have literally, yes, cost cuts, cuts costs for sure, but look at the number of jobs lost, stuart, because of this kind of manufacturing, the manufacturing departure.
00:11:51.668 --> 00:11:55.115 Stuart, because of this kind of manufacturing, the manufacturing departure.
00:11:55.115 --> 00:11:59.110 Look at the fact that the United States is falling behind in many different areas, not only manufacturing, but technology and whatever.
00:11:59.110 --> 00:12:02.001 We like to pat ourselves on the back saying we're great at AI.
00:12:02.001 --> 00:12:06.153 Uh, take a look at China, folks, please take a look at China.
00:12:06.153 --> 00:12:09.581 Okay, the Indian threat of economics.
00:12:09.581 --> 00:12:11.431 What, stuart, you're bang on with?
00:12:11.431 --> 00:12:16.676 What you were saying in terms of we need to pay attention outside of our doors.
00:12:16.676 --> 00:12:22.313 We're sitting here looking very much inside our home and saying this is the bubble.
00:12:22.313 --> 00:12:23.777 No, no, no, no, no, no.
00:12:23.777 --> 00:12:24.538 It's not a bubble.
00:12:25.159 --> 00:12:30.653 What Donald Trump is telling the world in a message is be prepared for a new sheriff in town, not the old sheriff of 2017.
00:12:30.653 --> 00:12:32.735 Be prepared for a new sheriff in town, not the old sheriff of 2017.
00:12:32.735 --> 00:12:34.356 It's a new sheriff of 2025.
00:12:34.356 --> 00:12:38.120 And he's coming in to say I want to make business in America better.
00:12:38.120 --> 00:12:46.206 Al, you could come into the United States and what people who understand this see is that the world now has a new opportunity to invest in America.
00:12:46.206 --> 00:12:50.250 Americans have a great opportunity to invest in the United States.
00:12:50.250 --> 00:12:53.594 There is a business-minded president who wants to grow the economy.
00:12:54.556 --> 00:13:01.004 Now he wanted to offer tax cuts for tips and those same economists said that's a terrible idea, it's inflationary.
00:13:01.004 --> 00:13:03.041 Harris copied the damn thing.
00:13:03.041 --> 00:13:04.035 So you know.
00:13:04.035 --> 00:13:05.278 You're asking yourself what was the?
00:13:05.278 --> 00:13:09.647 Were these economists all Donald Trump haters and they needed to figure it out?
00:13:09.647 --> 00:13:13.402 Sure, probably I have no, I'm just giving you my opinion.
00:13:13.402 --> 00:13:21.349 I don't know, but what I saw over this election was tremendous politicking over who's right, who's wrong.
00:13:21.349 --> 00:13:30.054 But Trump's idea is to abolish tax on tips overtime, social security benefits, and he says oh, it's going to cost the economy trillions, stuart.
00:13:30.054 --> 00:13:37.688 He put up the Department of Government Efficiency, putting Vivek Ramaswamy and his buddy Elon Musk to go into cleanup shop.
00:13:38.457 --> 00:13:53.244 That message that he's driving through the election had to have had an effect on investors, had to have had an effect on people going oh, wow, we are going to be business first, we are going to put America first, and I think that's what the stock market reacted to last week.
00:13:56.903 --> 00:13:58.221 We know there's volatility.
00:13:58.221 --> 00:13:59.865 It's never consistent.
00:13:59.865 --> 00:14:08.361 Okay, and you're right, people will sell off between now and Christmas time for tax purposes and whatever and there will be a drop in the market.
00:14:08.361 --> 00:14:31.831 Absolutely, there'll be a correction and they call it that, but reality is that the first couple of days of Trump's election his win, the nominations first couple of days of Trump's election his win, the nominations, the people and so on and so forth sent a clear message, stuart, that Donald Trump is putting America first as a business, not as a country, as a business, and I think people love that idea.
00:14:31.831 --> 00:14:47.965 Stuart, I don't know how you feel as we wrap up this Friday episode, but what do you think If you could look at your crystal ball, my friend, into 2025, and you're saying, wow, if I'm an investor, if I'm an investor, should I be happy right now?
00:14:49.317 --> 00:14:53.075 As it is illegal to look into a crystal ball as a financial advisor.
00:14:53.075 --> 00:15:05.222 I will play with my magnetic marbles and the one thing that I will tell you it's very interesting about magnetic marbles and the one thing that I will tell you it's very interesting about magnetic marbles they're all together and I got to be honest with you.
00:15:05.222 --> 00:15:37.062 I think that if, given the rope to go, I think we have a really bright economic future in North America, I think Canada and Mexico will benefit greatly by what the Trump administration is trying to lay forward, the more pressure on the US manufacturing and US spending will peel out to Canada and Mexico for labor and for manufacturing.
00:15:37.062 --> 00:15:45.000 It'll also bleed into Europe for tourism, because the more money Americans make, the more they travel.
00:15:45.000 --> 00:15:47.467 The more they travel, the better the economy.
00:15:48.014 --> 00:15:56.976 And, david, on that note, I'm going to cut out with you and say you know, be smart guys, it's not what you make, it's what you save.
00:15:56.976 --> 00:16:01.639 Be prudent, you don't have to have something bigger than your neighbor.
00:16:01.639 --> 00:16:08.845 Number two, number three just be happy, enjoy what you do.
00:16:08.845 --> 00:16:11.787 Money makes the world go round.
00:16:11.787 --> 00:16:12.768 Money is a tool.
00:16:12.768 --> 00:16:14.528 Cherish it.
00:16:14.528 --> 00:16:19.652 You only get so many tools in a lifetime, david wrap it up On that note.
00:16:19.672 --> 00:16:21.393 Ladies and gentlemen, I got to put that in a mug.
00:16:21.393 --> 00:16:24.096 Listen, we're not financial advisors.
00:16:24.096 --> 00:16:25.639 I'm not a financial advisor, stuart.
00:16:25.639 --> 00:16:28.027 Is you want to contact Stuart for financial advice?
00:16:28.027 --> 00:16:28.535 Please do.
00:16:28.535 --> 00:16:32.166 All we're saying is we're looking at the politics, we're looking at the geopolitics.
00:16:32.166 --> 00:16:38.485 When it comes up to the stock market, you got to pay attention and I think the Donald Trump effect will have a positive effect.
00:16:38.485 --> 00:16:45.961 As a Canadian steward, I got to tell you people are petrified, honestly, people are petrified of tariffs and this and that, and I keep telling people slow down.
00:16:45.961 --> 00:16:47.686 Growth is there.
00:16:47.686 --> 00:16:54.538 There's an extraordinary opportunity for growth and if you take the opportunity now, do it With that folks.
00:16:54.538 --> 00:16:56.524 That's how we're done.
00:16:57.034 --> 00:16:58.917 Friday we want to go and have a good weekend.
00:16:58.917 --> 00:17:00.018 Friday, we want to go and have a good weekend.
00:17:00.018 --> 00:17:01.639 So we want to wish you all the best on this, folks.
00:17:01.639 --> 00:17:08.986 We'll hope to see you again Monday and Wednesday and Friday, because we broadcast on noon Eastern this unedited edition of the Rant Network.
00:17:08.986 --> 00:17:11.327 Follow us on the social Subscribe on YouTube.
00:17:11.327 --> 00:17:11.728 Folks.
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