Post
Topic
Board Bitcoin Discussion
Re: What does a President Trump mean for Bitcoin?
by
sibilant_doge
on 13/12/2016, 12:18:23 UTC
Dollar rises together with Bitcoin. I don't know why but gold and silver prices are going down. This means somebody is manipulating that price and one day it'll skyrocket. I have a feeling that a big crash is going to come upon the markets soon. I spoke to many investors and people specialized in Bitcoin and Gold, and they all said something big is about to happen. The real question is WHEN is it going to happen. I think Trump will boost its price.

It is fully expected and natural for the overall valuation of the stock market to drop. If/when the federal reserve interest rate is raised (no more free loans to banks), the risk free rate will increase. This sets a higher performance bar for traditional stocks and securities in terms of P/E ratio. Companies have two options. Increase their earnings, or expect a drop in share price. A drop in share price won't be the end of the world, it just means the stocks are effectively "on sale", and healthy returns on investment will once again be more accessible to the common folk.

The people who will be more damaged are those who bought into value stocks when prices were inflated. These will be companies which don't pay out a dividend but derive their valuation form expected growth.