Wall Street turns its back on Trump and Musk by dumping related assets
As the blame game erupts within Republican ranks over the midterms rout, what was an extraordinary day in Washington saw a remarkable rally on Wall Street. The best day in 20-months for the Dow Jones Industrial Average, while tech stocks rose on the Nasdaq. But Elon musk’s Tesla and SpaceX took a hit. The billionaire spending hundreds of millions of dollars unsuccessfully backing Republicans in the midterms.
I believe the clean sweep by the Democrats raises questions about Starlink’s government grants and contracts, as well as those involving SpaceX and Tesla.
The oil price slump also appeared to boost global stock markets, but I remain unconvinced the optimism will last. While investors may expect a less antagonistic U.S. foreign policy towards the Middle East, Donald Trump remains a lame duck president with the power to issue executive orders that could continue to destabilise markets.
Roger Montgomery is the Founder and Chairman of Montgomery Investment Management. Roger has over three decades of experience in funds management and related activities, including equities analysis, equity and derivatives strategy, trading and stockbroking. Prior to establishing Montgomery, Roger held positions at Ord Minnett Jardine Fleming, BT (Australia) Limited and Merrill Lynch.
He is also author of best-selling investment guide-book for the stock market, Value.able – how to value the best stocks and buy them for less than they are worth.
Roger appears regularly on television and radio, and in the press, including ABC radio and TV, The Australian and Ausbiz. View upcoming media appearances.
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