Overcome challenges, seize opportunities
November 5, 2024 marked a historic moment for the US as former President Donald Trump was re-elected, showing strong support for him and the Republican Party, often referred to as the "Grand Old Party (GOP)".
With a landslide victory over incumbent Vice President Kamala Harris, Donald Trump became the 47th President of the US. He gained the trust of voters amid skepticism due to prolonged inflation after the pandemic and a lack of confidence in the Biden administration's ability to reform the economy.
Trump's promise to "Make America Great Again" and "Restore the Economy" is said to be based on the economic plan of his Finance Minister candidate, international financial expert Scott Bessent. This plan is inspired by the "three arrows" of Abenomics - the economic policy that Japan applied when Prime Minister Shinzo Abe returned to power for his second term.
Derived from Abe's three-principle policy, Trump's principles, or "Trumponomics 2.0", focus on three main goals:
- 3% economic growth
- Reducing the deficit to 3% of GDP
- Increasing oil production by an additional 3 million barrels per day
These policies aim to address the economic concerns of Trump's supporters and may also be a one-way ticket for the country to move towards growth. However, the results will only become clear after the first 100 days of Trump's inauguration. How will these policies affect the financial markets in both the short and long term?
A chaotic picture
Economists and investors are preparing to face a series of strong fluctuations in the financial markets. Currencies, especially the US dollar, stocks, gold, oil and bitcoin have all experienced significant volatility.
As the uncertainty about the election results gradually dissipated, the US dollar has risen against most other major currencies, with EURUSD falling by 0.45% and USDJPY surging by 0.020% in the trading session.
The surge in the US dollar has had a ripple effect on the stock market. US indices, starting with the S&P 500, have risen 1.2%, recording a significant increase. The NASDAQ 100 index, which is heavily focused on technology, also rose 1.4% on November 5th, when traders had anticipated Trump's victory.
Bitcoin soared to a new record high of $75,000 in a risk-accepting environment. On November 14th, this leading cryptocurrency reached $90,000 for the first time in an exciting trading session as this digital asset continued its 7-day winning streak.
Analysts link the spectacular price increase of Bitcoin to the US presidential election cycle. In 2012, when Obama won the White House race, Bitcoin rose 86%. Similarly, when Trump was elected in 2016, the price also increased by 44%, and reached a peak in 2020 when Biden was elected, with a 145% increase.
Notably, the price increase of Bitcoin seems to follow a 4-year cycle, coinciding with the Bitcoin halving event, when the mining reward is cut in half. The impressive performance of this cryptocurrency is also supported by crypto-friendly regulations under the Trump administration. However, cryptocurrency traders need to exercise careful risk management and monitor the news, as the possibility of a sudden correction is not too far-fetched.
In contrast, the price of gold has declined from its peak of $2,790.01, pushed down by the strong US dollar, while WTI crude oil continued its weak upward trend before turning back down to $71.89, amid concerns about Trump's deregulatory approach, trade policy and increased supply.
Traders can access all these basic assets as well as specific stocks related to Trumponomics, such as shares of Trump Media & Technology Group Corp (NASDAQ: DJT), through contracts for difference (CFDs) with Libertex - the leading global broker in online trading.
Adapting to Trumponomics 2.0 with Libertex
To meet the demand of traders for attractive assets related to Trump, Libertex has started offering CFDs on DJT stocks. This expands Libertex's already extensive CFD instrument portfolio on MT5 and its exclusive trading platform, allowing traders to diversify their exposure to basic assets related to Donald Trump - assets that may be particularly sensitive to major policy changes.
This new addition is a testament to Libertex's commitment to its clients and its ability to adapt to market changes and create unique investment products that meet the requirements of both experienced and novice traders.
The DJT stock CFD provides traders with the opportunity to access a highly liquid and volatile stock market. The price of DJT shares has fluctuated strongly from October to November as the heat of the battle between Donald Trump and Kamala Harris reached its peak, dropping by around 5.31% on the Libertex CFD platform.
Such volatility comes with both risks and opportunities. Therefore, traders need to be cautious and use the risk management tools available on Libertex platforms.
These tools include Stop Loss, Take Profit and Limit orders, combined with a comprehensive risk management policy, allowing traders to minimize trading risks.
In addition to the DJT stock CFD, traders can access hundreds of basic assets through contracts for difference, including Forex, cryptocurrencies, ETFs, bonds, options, indices, commodities and metals.
With competitive spreads, attractive leverage, and powerful technology, including trading calculators, charts, and indicators, Libertex helps traders confidently seize every opportunity that Trumponomics presents.
Training is also a top commitment of Libertex for its clients. Libertex's Training section provides access to comprehensive lessons on a variety of topics - from basic trading concepts, chart patterns, and moving averages to exclusive insights on technical and fundamental analysis.
Traders looking to enhance their trading skills can also find additional resources on Libertex's Blog, which provides in-depth analyses on how financial markets operate.
Furthermore, Libertex offers a range of rich educational resources such as webinars, podcasts, guides, and tutorial videos, equipping traders with the necessary knowledge to achieve their goals.
This extensive content library, combined with advanced risk management tools and modern technology, forms a powerful trading toolkit that gives traders a competitive edge. Visit the website now to explore Libertex's full range of products and services.
*Note: All price and performance data is based on asset prices on the daily and monthly charts available on the Libertex platform.
Note: This is an advertisement article from a partner, part of the Press Releases section of Bitcoin News, and not an investment advice. You should do your own research before taking any action, and we are not responsible for your investment decisions.
