Donald Trump will be the next U.S. president.
We never thought we’d say that in a million years. But that’s where we find ourselves today.
Trump pulled off arguably the biggest presidential election upset ever. But he didn’t just beat Hillary. He ran away with the election.
Based on the latest count, Trump grabbed 289 of the electoral votes. Hillary won just 218 votes.
• Most Americans were shocked by the outcome…
But not Casey Research founder Doug Casey. He said Trump would win the election months ago.
In July, Doug told Kitco, one of the world’s biggest gold and silver dealers, Trump would win “because the people are very fed up.”
It was a bold call, to say the least.
For most of the race, Hillary was the clear frontrunner. She even held her lead after the FBI said it was going to investigate her for her email scandal.
Still, Doug stuck by his bold prediction.
• He even doubled down on this call two weeks ago in New Orleans…
He told the audience at the New Orleans Investment Conference that Trump would win “in a landslide.”
Just to be clear, Doug didn’t vote for Trump. According to Doug, voting is a waste of time…compromises your privacy…encourages politicians…and doesn’t even make a difference. Worst of all, he says it’s unethical.
The political process is one of institutionalized coercion and force. If you disapprove of those things, then you shouldn’t participate in them, even indirectly.
Instead of voting, Doug called up his bookie and bet $500 (AUS) on Trump. According to Doug, that bet paid out 5-to-1.
Doug also bet former Casey analyst Marin Katusa 100 oz. of silver that Trump would win. Doug says Marin will pay him his silver on stage at the Vancouver Resource Investment Conference in January.
• Now, we didn’t write this issue just to tell you about Doug’s winning bets…
We also aren’t here to tell you if we think America made the right choice or not.
Instead, we want to help you make sense of this situation. Specifically, we want to show you what a Trump presidency could mean for your money. This is an investment newsletter, after all.
Let’s start with stocks…
Heading into Election Day, most investors thought stocks would tank if Trump won.
You see, Trump is a total wild card. He has no political experience. And his policy plans don’t seem well-thought-out.
In short, we don’t really know what we’re getting with Trump. And the “market” hates uncertainty.
• Stocks around the world crashed last night as Trump pulled ahead of Hillary…
The Hang Seng Index, Hong Kong’s main index, fell 2.2%. The Japanese Nikkei 225 plunged 5.4%.
It looked like the panic was going to spread to U.S. stocks. At one point last night, the futures for the Dow Jones Industrial Average were down more than 5%.
Many people probably went to bed last night thinking they would wake up to Armageddon.
But both the S&P 500 and Dow Jones Industrial Average opened the day flat…and then they rallied.
As we go to press, the Dow is up 1.4%. The S&P 500 is up 1.1%.
• Today’s big jump might excite some investors…
But we don’t think you should rush back into the market just yet.
As we’ve said many times, the market is very fragile right now.
For one, stocks don’t have any momentum right now. The S&P 500 hasn’t set a new high since August.
Companies are struggling to make money. Corporate earnings have fallen for five straight quarters. That’s the longest earnings slump since the 2008–2009 financial crisis.
And stocks are expensive. According to the popular CAPE ratio, companies in the S&P 500 are 60% more expensive than their historic average.
According to Doug, “bailing wire and chewing gum” are holding the stock market together. In other words, it won’t take much for stocks to crash.
• If stocks start to fall again, the media will almost certainly blame Trump…
They’ll probably say it’s a sign that the sky is falling.
But we actually think a pullback could be good for the market. Doug told Kitco back in April:
“Since we’re already in a stock market bubble due to super low interest rates combined with money printing, more of the same would be a disaster. It’s best that the bubble be popped sooner rather than later,” he said.
“[A]t this point higher stock prices aren’t good for the stock market; they’ll just result in the rich getting richer in the short run, and a bigger crash later.”
Some people might find this controversial. But Dispatch readers know stocks have lost touch with reality in a lot of ways. A pullback or even a big crash could help the financial system purge excesses built up over the last few years.
• Doug thinks U.S. stocks are headed much lower in the coming months…
To prepare for this coming crisis, Doug put $1 million of his own money in gold stocks.
As you probably know, these stocks are leveraged to the price of gold. A 10% jump in the price of gold could cause gold stocks to soar 20%, 30%, or even 50%.
Doug’s biggest bet was on a tiny Canadian gold miner. Most investors have never heard of this company. But it could soon become a household name in the precious metals community.
That’s because the company has a stake in the world’s largest undeveloped copper and gold deposit.
Doug’s so convinced this stock will take off that he called it his top gold stock at the New Orleans Investment Conference. Doug’s team also recommends it to readers in The Casey Report.
• This morning, Doug’s top gold stock skyrocketed 25%…
That’s a gigantic gain for one day. But Doug thinks it’s headed much higher in the coming months.
Best of all, the U.S. stock market won’t have to crash for this stock to take off.
To see why, check out this brand-new presentation. It talks about three little-known catalysts that could soon cause gold stocks to skyrocket.
One of these events could cause $3 TRILLION to flood into a small corner of the gold market. Another could change the landscape of the global gold market forever. The third could make it much harder for the average person to get their hands on gold.
The mainstream media has barely mentioned these three catalysts. They’ve been too busy covering the election. But these events could soon get mainstream coverage now that the election is behind us.
If that happens, investors across the world could start buying gold hand over first. You’ll want to own gold before that happens.
You can learn more about this “trifecta” by watching this FREE video.
These Companies Are on “Death Watch”…
Editor’s note: Yesterday, we shared a special essay from Porter Stansberry, founder of Stansberry Research. In it, Porter talked about the explosive buildup in corporate debt and why it’s going to end very badly.
Today, we have another important essay from Porter for you. In this one, he talks about a “primal” force that controls the stock market during critical periods…like the one we’re in right now.
Investors who understand this force could avoid huge losses the next time stocks crash. It could even make you a fortune over the next three years. Porter reveals why in the essay below, published yesterday in The Stansberry Digest.
From Porter Stansberry, founder, Stansberry Research
Today, the leading car-rental business in the world, Hertz (HTZ), saw its share price fall more than 50% in the first few hours of trading. The collapse erased more than $2 billion from the accounts of some of the world’s best investors, including Carl Icahn, who owns more than 12 million shares.
Meanwhile, we’ve been warning investors about the consequences of an unsustainable debt bubble in the auto industry since 2014. Last month, we showed the subscribers of our flagship newsletter, Stansberry’s Investment Advisory, why car-rental companies are sure to collapse in a matter of months, as the auto-finance complex collapses under the weight of the industry’s bad subprime loans. We recommended shorting both Hertz and Avis (CAR), a move which has led to huge profits in only a month.
While some of the best investors in the world got hurt by changes they never saw coming in the credit markets, many of our subscribers saw their portfolios increase in value by huge amounts.
This is only the latest example of how our understanding of the credit markets greatly increases our ability to guide investors in the equity market.
These credit trends are by far the most powerful force in the stock market. Ironically, however, they’re largely invisible to virtually all investors – even the most sophisticated.
Over the next week, you’re going to learn more about the underlying structure of our financial markets than you ever knew existed.
You’re going to understand – maybe for the first time ever – what really causes the most powerful changes in the financial markets.
I (Porter) am talking about the trends that overthrow the existing order, that move bull markets into bear markets, and vice versa. I’m talking about the kind of massive market moves you can “feel” coming… but that maybe you’ve never been able to fully explain, or put your finger on.
Trust me, it’s not about lines on a chart. Or the earnings announcements that the media seems to believe drive the markets higher or lower.
A much more powerful, more “primal” force controls the stock market during critical periods, like the one we’re entering now. And I’m going to explain it all to you… for free.
***You can make a fortune…
If you read the next seven Digests carefully, you won’t need to buy anything from us to make a fortune in the markets over the next three years. We’ll give you everything you need to know – in black and white. You can even print off a copy and refer to this guide as often as you like.
Yes, we’re hosting a webinar, too, which you can sign up for right here. It’s scheduled for next Wednesday, November 16, at 8 p.m. ET. We will review this material and we’ll go over a few case studies – examples of our strategies that are happening in real time. (As you’ll see below, we’re going to do the same in today’s Digest.) We’ll also answer as many questions as we can in two hours.
But again, you won’t have to pay a penny. The webinar is free.
You will, of course, have to be the final judge of what this information is worth, but I know most people pay $100,000 or more to acquire this kind of knowledge in master’s programs or CFA studies. You can get it for free… and in a fraction of the time normally required.
***Your only commitment…
But you will have to commit your time over the next week. It will be fun – really. What we’re going to teach you is just common sense dressed up in a lot of financial jargon. And as you understand that, more and more… as the picture becomes clearer and clearer… you’re going to feel much more confident about what you’re doing in the markets.
I bet that for the first time ever, you won’t feel anxious about what might happen to your savings. Instead, you’ll be excited about what’s going to happen next because you’ll know why it’s going to happen.
Editor’s note: We’re seeing unprecedented warning signs in credit markets all around the world…
The global scale of these problems means the coming crisis—what Porter has called “the greatest legal transfer of wealth in history”—will be truly historic.
Folks who don’t see what’s coming could be wiped out…while those who prepare now could set themselves up to earn a fortune, as much as 10 to20 times their money as the inevitable bust plays out.
This is why Porter is hosting a live presentation on Wednesday, November 16, at 8 p.m. ET to explain it all…what he’s calling his biggest trade yet.
He’ll tell you exactly what happens next and what you need to do to prepare. If you still haven’t reserved your spot yet, we urge you to do so now by clicking here.
Porter recently sat down with Agora Founder Bill Bonner to discuss his Big Trade. You can watch it here.