What Does A Trump Presidency Mean For Penny Stocks?
Penny stocks are a fickle bunch. Sometimes they are greatly impacted by the market trends and other times they completely go against anything you would ever think. With President Trump in office, does this mean that Penny Stocks will be changing their tune and fall in line? Probably not but it isn’t Trump’s fault, penny stocks in general beat to the sound of a different drum. But where there is a will there could be a way and the Trump presidency could be giving even more reason to be paying attention to penny stocks that are able of weathering a storm and a potential bubble.
There’s the travel ban thing, the Russian conspiracy, staffing issues, you name it but stocks in general continue to dust off their shoulders and scramble to new highs. This of course has brought people’s attention back to speculative investments and penny stocks may be some of the most sought after as far as this goes.
“The stock market is completely wrong,” said Douglas Kass of hedge fund Seabreeze Partners. “My view is that the fiscal path and regulatory reforms coming out of Washington and the new administration are likely to provide a lesser and later contribution to economic and profit growth than the consensus expects. I don’t think it should be friendly to the markets.”
“The market is looking for reasons to go higher, and the administration has provided it,” said Scott Clemons of Brown Brothers Harriman. “Right now, a lot of that is projection, hopes and intentions, which — when it collides with the reality of having to deal with Congress, even held by the president’s own party — that leads to disappointment down the road.”
But for those who trade penny stocks in general, they already know that speculation brings risks and the “ebb and flow” has much greater highs, lows, and volatility overall. So what does the Trump presidency mean for Penny Stocks? In our opinion, volatility is a tough “addiction” to get away from and when the larger markets stop offering that, people may turn toward penny stocks to get their fix.