Trump Won, Now What?

In 1996, I read James P. O'Shaughnessy's What Works on Wall Street (WWOS), one of the most important investment books of the 20th century. At the time, O'Shaughnessy was the only person with market data back to the 1950s. He could test all sorts of strategies that no one else could, which gave him a massive edge in understanding the markets over time.

In 1997, I wrote to Mr. O’Shaughnessy seeking an internship while in college. Shortly after writing that letter, I sat at his desk, writing code in Fortran and testing strategies over 40 years. This wasn't an internship with busy work, brewing coffee, or fetching the mail.

The firm had a 1-gigabyte Dell computer—top class, like a Cadillac—that cost $10,000. It's amazing to think about sitting there nearly 30 years ago, how time flies, and what a 1-gigabyte computer could do.

The most important thing I learned in testing those strategies is that not much matters. Think about all the stuff that happened between 1951 and 1997: Wars, elections, booms, busts, famine, health crises, inflation, and the Yankees winning several World Series.

You know, mostly the stuff we deal with today, except for the Yankees winning.

None of it matters. What matters is sticking with the system.

That’s it.

If you have an edge, you need to stick with the system. As I point out in my book Unbounded Wealth, you need to stick with the system through thick, thin, hell, or high water.

You don’t know when your edge will work in your favor, so you must hang around long enough to make it work for you. Even the best strategy has periods of under-performance. Like Mike Tyson said, “Everyone has a plan until they get punched in the nose.” Doubt creeps in. Then, the strategy gets abandoned. People move on to the next hot thing. And so they’re a mouse on the treadmill and don’t get anywhere. They especially don’t get any closer to financial security.

The most critical factor in my testing is following the trend. The trend is your friend. The trend also accounts for war, inflation, health crises, booms, busts, and elections.

Price is what matters.

Identifying a trend is easy. Following the trend is not. Otherwise, everyone would do it.

That said, there’s nothing more profitable.

Following the trend also means you don't need to pay attention to the news—it's just noise. As I note in Unbounded Wealth, the news is detrimental to your mental, physical, and financial well-being, and I highlight studies to prove it.

Which leads me to Trump.

I have been inundated by friends, family, and others asking me what I think Trump’s election win means for the market.

I don't know.

I do know the trend is up.

And market risks are elevated due to the duration of the stock move up and the concentration of a few stocks driving those returns. That’s one of the benefits of reading Dent research. Harry is a fabulous risk manager.

The trend is up. Risk is up. That's it—that's all that matters. So, my account is at an all-time high, and I'm staying out of my own way, but I am on alert.

I do not think Trump's victory is a surprise. I have a few friends who bet professionally. The brain power, discipline, and dedication required to earn a living betting for 30-50 years is tremendous. Applied to some other endeavor, these people could easily compete with Elon Musk in a race to Mars.

Instead, they have chosen to bet on a one-toed, hoofed mammal running in a circle at 35 MPH with a midget on top of it. If you can make a living over decades betting on thoroughbred racehorses, you can do anything.

Those people and their contacts -- the smart money -- had bet Trump so big that there was no edge in either the Electoral College or the popular vote. It was a foregone conclusion. The only thing left to do was to vote and count those votes.

There was possibly an edge in betting that a candidate – presumably either Trump or Harris – would win six of seven "swing states."

But that’s it.

All the meltdowns and gloating on TV and online are from people who had no clue it wouldn't even be close. Like a cold-blooded killer, the smart money calmly collected their winnings and will move on to the next opportunity.

Of course, I have friends and family on both sides of the political spectrum.

It’s a very divisive time in our country and the world.

I voted. I hope you voted. I don’t give two hoots who you voted for. It makes no difference to me and has no bearing on how I feel about my friends, family, or anyone else.

The market will go up and down. Sometimes, it will be volatile, and sometimes, it won't.

The trend will factor in all of that. It really is that simple. Follow the trend, stick with the system, and manage risk. Take care of those, and you'll be just fine!

Why invest if the market is frothy?

That’s the next question I get.

Well, there are edges everywhere. Your job is to find a few of them and then methodically exploit them.

Despite the market being frothy, there’s money to be made.

Always.

After thinking about this, I am going to make you an offer you should not refuse.

As you know, I expanded my role with Dent when Rodney Johnson stepped away in August. I first met Harry in 2011 and teamed up with him in 2015. Harry has confidence in my methods and gives me leeway to "do my thing."

Of course, the proof is in the pudding, as they say.

Harry is giving me that leeway, but of course, he wants a return on his investment in me like anyone.

So, here’s the deal.

Microcaps are one of the best edges in the stock market. Why? If you have a system you can exploit, then you can get in on stocks ready to move that Wall Street can't. Because the stocks are small and nimble, individual investors can exploit Wall Street Fat Cats instead of the other way around.

I have such a system. I launched it in mid-2019 while working with Harry at a predecessor financial publisher.

It’s called Microcap Millions.

I don’t need to hype it. As I like to say, “No hype. Just returns.”

Since mid-2019, Microcap Millions has been up 1,003.89% compared to 55.91% for the index through November 8, 2024. That’s…nearly 18x.

Here’s the performance chart.

Here’s the year-by-year breakdown.

Rodney was a huge fan of this strategy, which is how I came back on board with Dent.

Now, strangely, some people won’t renew at the end of the year.

Being up 1,000%+ isn’t enough. And being up nearly 50% makes them unhappy.

Would you be unhappy with 10X your money in a few years?

Me either.

In an effort to eliminate party poopers, on January 1, 2025, I am going to only make Microcap Millions available to 100 people.

Just 100.

Then I am going to triple the price.

Then, I am going to make people book an interview with me.

There will be no discounts, no hype, no goofing around. There will be only serious, like-minded people who want to take control of their finances and improve their financial health.

So, in the spirit of my expanded relationship with Harry Dent, I will make this available to just 20 people at the current price. Once the 20 spots are gone, they're gone.

Actually, it’s 19 people since one just signed up.

How do I deal with frothy markets? Well, I have that handled. I have models that adjust to market trends based on indicators I developed. I don't want to sit through a 50% bear market any more than you do.

But in order to know more about that, you need to take action.

You can learn more and sign up here!

19 and counting down…

As always, I welcome questions, comments, and snide remarks at jd@unboundedwealth.com. I truly enjoy hearing from readers, and the biggest benefit of writing in this space each week is knowing that people are engaged.

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