Bitcoin and gold skyrocket after Trump victory — financial expert explains why



After former President Donald Trump declared victory last week, the value of Bitcoin, gold, and various stocks skyrocketed. Financial expert and author of “MoneyGPT” James Rickards knows why.

“The immediate reaction to the Trump election was stocks took off, and with good reason. His economic policies, less regulation, drill baby drill, basically getting rid of wasteful investment in what I call the ‘Green New Scam,’” Rickards tells Jill Savage and Stu Burguiere on “Blaze News Tonight.”

“So he has a lot of things that are going to be very good for stocks. However, there’s something bigger than Trump. There’s something bigger than the electoral process, which is the economy itself,” he continues, noting that in the next six to nine months, we may be going through a recession.


“There are a lot of signs of recession out there, so we may get off to a rough start, but the same thing happened to Ronald Reagan in 1982. He had one of the worst recessions in U.S. history but finished with very strong growth toward the end of his first term and into a second term,” he explains.

While Rickards believes that Trump’s presidency will overall be a good thing for the economy, he isn’t so sure about Bitcoin as a form of currency in general.

“I’ve studied Bitcoin for a long time,” Rickards says. “If you want to buy Bitcoin, knock yourself out. But I don’t really think of it as a form of money.”

“It’s really just a form of gambling. I don’t really think of it as an investment. There’s no use case for Bitcoin. Now, can you make money? Absolutely, a lot of people have. So my attitude is I’m not a Bitcoin-basher,” he adds.

As for gold, Rickards explains that the value of it isn’t actually getting higher.

“It’s not that gold’s getting higher, it’s that the dollar is collapsing in front of your eyes,” Rickards says. “What’s really happening is you’re watching your dollar evaporate. You’re watching the dollar crash.”

“The main reason is people are looking for alternatives to the dollar. I’m not saying the dollar is going away. You can’t totally get out of the dollar. It’s too big for that,” he adds.

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Carol Roth explains Wall Street crash: 'We can still take some comfort'



Yesterday saw a massive plunge in the Dow Jones and Nasdaq indexes, sparking a global selling frenzy and leading Americans to ask the dreaded question: Is the United States headed into a recession?

Recovering investment banker and author of “You Will Own Nothing,” Carol Roth joins Jill Savage and the “Blaze News Tonight” panel to shed light on the situation.

'Fears of Recession': Trump Blames Bidenomics for the Wall Street CRASH | 8/5/2024youtu.be

According to Roth, what is commonly referred to as the "Magnificent Seven” stocks – Apple, Microsoft, Google parent Alphabet, Amazon, Nvidia, META, and Tesla – “have really been carrying the stock market for the last couple of years, gaining incredible amounts of value at least on paper.”

Then, “Over the past few weeks, there started to be some cracks, I think, that investors realized — that their valuations had gotten a little bit frothy [and] that companies were going to actually have to spend a ton of money in order for their AI dreams to come true,” says Roth, “so we started to see a pullback on that.”

Then the “pullback” Roth mentions was “accelerated ... last Wednesday when the Federal Reserve Chairman Jerome Powell said that he wasn't planning to cut rates at this particular meeting, although still leaving on the table of September as a cut.”

“Then Friday came along, and we got a really ugly jobs report, so that triggered a recessionary indicator,” she explains, adding that there were also “some concerns that maybe the economy wasn't as strong as the Fed had been projecting and that they may be behind the curve when it comes to cutting rates.”

“So already we were seeing trillions of value being lost from the stock market because of this. Then we have the Middle East escalation over the weekend, and then we have Japan,” Roth tells Jill.

“In Japan, they have sort of the opposite situation happening that we have here. They had their rates at a negative level or zero for about 17 years, and finally they decided about four months ago they're going to try to normalize,” says Roth. “This Wednesday they decided to hike their rates and that created some issues and some strength with the yen and in doing so created ... sort of an unwinding of various trades that ended up creating a contagion that spilled over into the U.S. market.”

“Fortunately, our contagion, even though it was not a pretty day, was not nearly as bad [as Japan], and the good news is that this is really a breather in the market.”

“You still have the Nasdaq up about 29% for the last 52 weeks, the S&P 500 up about 26%, so while it is an ugly day, and we do need to take in sort of the totality of what's going on, we can still take some comfort that we were able to only have a few percentage points lost in terms of the contagion.”

“Mysteriously this morning, millions of people weren't able to trade at all. ... Are we normalizing this? What is going on here?” asks Blaze Media’s editor in chief Matthew Peterson.

To see Roth’s answer, watch the episode above.

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Financial expert WARNS: Left wants a trajectory LIKE VENEZUELA

Financial expert WARNS: Left wants a trajectory LIKE VENEZUELA

White House press secretary Jean-Pierre said the Biden administration is not monitoring the stock market amid Wall Street's longest losing streak in 99 years



White House press secretary Karine Jean-Pierre confirmed that the Biden administration is not monitoring the stock market on a regular basis as the Dow Jones Industrial Average suffered its longest losing streak in 99 years.

While speaking to reporters, Jean-Pierre said that “nothing has changed on how we see the stock market,” which is “not something we keep an eye on every day, so I’m not gonna comment on that from here,” the Epoch Times reported.

The Nasdaq Composite dropped nearly 5%, while the Dow Jones shrank by 4% last Wednesday. On Thursday, the Dow Jones dropped more than 440 points during the morning trading hours.

Earlier in 2022, former White House press secretary Jen Psaki said that President Joe Biden “does not look at the stock market as a means by which to judge the economy.”

The stock market’s historic plunge was triggered, in part, by selloffs of major corporate retailers like Target and Walmart. Target lost nearly 25% of its value after it reported earnings fell short of forecasts made by analysts largely due to shipping costs that high fuel prices and inflation have exacerbated. Other major retailers also saw significant losses in recent days.

Rising interest rates, spiraling inflation, the ongoing Russian invasion of Ukraine, and a slowdown in China’s economy have reportedly caused investors to reconsider the prices they’re willing to pay for a wide range of stocks.

The rampant selloffs lasted for eight consecutive days marking the longest weekly losing streak on Wallstreet since 1923, CNN reported.

The S&P 500 — a much broader index than the Dow Jones — posted its seventh-straight weekly loss marking the index’s longest slump since March 2001. The S&P 500 briefly entered a bear market on Friday after recording a 20% loss from the all-time high that it reached this past January.

The last bear market occurred two years ago during the COVID-19 pandemic, but the recent market conditions will mark the first time since then that new investors could experience true economic shrinkage.

LPL Financial’s Ryan Detrick said, “From inflation to a hawkish Fed, to war, to supply chain issues, to China on lockdown, to a slowing economy, there are many reasons stocks have done as poorly as they have recently.”

Detrick suggested that a “bounce back” is likely, however.

He said, “If we get any good news, a big bounce-back rally is likely.”