Does Trump 2.0 Care About The Stock Market?
That's a question we posed in a trade alert to our subscribers earlier this week. We answered it this way:
Probably not as much as Trump 1.0 did. This is not a typical presidency, where stock market and short term economic performance are top of mind for the administration. And this is not a “conservative” administration either. It’s aiming to be a revolutionary one, rolling back decades of left-establishment policy on immigration, trade, deficit expansion, race preferences, war, etc.
Also, in a reversal of typical Republican administrations, President Trump’s strongest support today comes from America’s youngest demographic—the one that owns the least amount of stocks and real estate.
👀 Trump Approval might be a boring 50% right now, but the age Demos are WILD!
— Mark Mitchell, Rasmussen Reports (@honestpollster) March 3, 2025
65+ - 45%
40-64 - 46%
18-39 - 60% <==🤯
Maybe America has a future again.
Today, we got confirmation from the man himself. When asked in the Oval Office whether he was adjusting policy based on stock market reactions, Trump said he wasn't even looking at the market.
The market selloff has been driven by a shift in investor sentiment, with traders now focused on what to sell rather than buy, amid concerns over trade wars, inflation and recession.
— Bloomberg TV (@BloombergTV) March 6, 2025
On Thursday, President Trump said: "I'm not even looking at the market" https://t.co/wJ5gGYusdT pic.twitter.com/9al2buCfCE
Navigating The Market Without A Trump Put
If neither the Fed nor the White House have your back this time around, investors should consider adjusting their approach in a few ways.
- Look for opportunities on the short side as well as the long side. Readers may recall we had another successful exit betting against Nvidia (NVDA) last week. We need to look for more opportunities like that.
- Take advantage of volatility. When the market drops, look for mean reversion opportunities. Four of our five successful exits last week were variations of this. If you'd like a heads up when we place our next trade of that type, you can subscribe to our trading Substack/occasional email list below.
- Consider hedging. Whipsaw rallies may be a good time to add downside protection. You can download the Portfolio Armor optimal hedging app by aiming your iPhone camera at the QR code below (or by tapping here, if you're reading this on your phone). Our app can help you find the least expensive hedges given your risk tolerance and time frame.
If you'd like to stay in touch
You can scan for optimal hedges for individual securities, find our current top ten names, and create hedged portfolios on our website. You can also follow Portfolio Armor on X here, or become a free subscriber to our trading Substack using the link below (we're using that for our occasional emails now).
