US investors hit panic button while Trump marches to the beat of his own drum

By Trevor Hoey. Published at Feb 1, 2017, in Features

A two-hour rally at the end of the day restored some respectability to the Dow’s performance after it had fallen nearly 200 points from the previous day’s close of 19,971 points to hit a low of 19,785 points.

The close of 19,864 points represented a decline of 0.5%. The NASDAQ fared better, but the close of 5,614 points only represented a marginal increase on the previous day.

It should be noted that historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering stocks in these markets should seek independent financial advice.

US markets are still lacking confidence, triggered by political instability and a mixed earnings season.

The Fed Reserve’s interest rate policy meeting this week is likely to be more of a reading between the lines exercise rather than debate over whether or not interest rates will move. Most analysts are tipping rates to stay on hold.

While Fed Chairwoman, Janet Yellen, won’t be drawn on political issues, part of her charter is to factor in both domestic and global volatility when framing monetary policy. Consequently, the events of recent weeks, the sharp uptick in investor anxiety and the potential for further volatility will be issues central to decision-making over coming months.

It is worth remembering that on a number of occasions in 2016 Yellen referred to issues such as Brexit and volatility in Asian markets to keep rates on hold when domestic data was looking more positive.

Consequently, it will be difficult for Yellen to ignore the extremely fragile and uncertain political and economic conditions in the US.

All European markets trended lower with the FTSE 100 (-0.3%) responding negatively to an appreciation in the British pound, a factor that can impact the earnings of British-based companies that generate overseas income.

The DAX and the Paris CAC 40 were down 1.2% and 0.7% respectively.

The oil price pulled back sharply late in trading but still closed some 0.4% higher.

Gold was the big mover as its safe haven status saw it increase from the previous day’s close of US$1,196 per ounce to a high of US$1,217 per ounce before closing at $1,212 per ounce, representing an increase of 1.4%.

On the base metals front, zinc continues to notch up long-term highs and last night rallied more than 3% to hit the US$1.30 per pound mark. While lead has been tracking zinc’s strong run closely, it came off slightly to finish at US$1.07 per pound.

Nickel and copper both gained ground with the latter breaking through the psychological US$2.70 per pound level.

The Australian dollar went close to touching US$0.760 in early trading, but is now hovering in the vicinity of US$0.758.

It should be noted that broker projections and price targets are only estimates and may not be met. Also, historical data in terms of earnings performance and/or share trading patterns should not be used as the basis for an investment as they may or may not be replicated. Those considering this stock should seek independent financial advice.

Where to invest $1,000 right now

When the experts at Next Investors have a stock pick, it may pay to listen.

The Next Investors have been investing in ASX small cap stocks for years, with their best small cap picks yielding returns of 1,200%, 1,120%, 900% and 678%.

They have just revealed their hand-picked, FY2021 stock portfolio of high conviction long-term investments.

Click the link below to see what they are currently investing in.


S3 Consortium Pty Ltd (CAR No.433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information only. Any advice is general advice only. Neither your personal objectives, financial situation nor needs have been taken into consideration. Accordingly you should consider how appropriate the advice (if any) is to those objectives, financial situation and needs, before acting on the advice.

Conflict of Interest Notice

S3 Consortium Pty Ltd does and seeks to do business with companies featured in its articles. As a result, investors should be aware that the Firm may have a conflict of interest that could affect the objectivity of this article. Investors should consider this article as only a single factor in making any investment decision. The publishers of this article also wish to disclose that they may hold this stock in their portfolios and that any decision to purchase this stock should be done so after the purchaser has made their own inquires as to the validity of any information in this article.

Publishers Notice

The information contained in this article is current at the finalised date. The information contained in this article is based on sources reasonably considered to be reliable by S3 Consortium Pty Ltd, and available in the public domain. No “insider information” is ever sourced, disclosed or used by S3 Consortium.

Australian ASX Small Cap stocks | Why is Australia’s leading small cap publication

Founded seven years ago, is Australia’s leading and longest standing website for investor and finance news, education and expert opinion.

Published by StocksDigital, Finfeed was created to report daily on the comings and goings of ASX listed stocks in the small cap market.

As the first digital publication dedicated specifically to this space, Finfeed soon became the most trusted publication in the market, quickly garnering over two million page views – a number that continues to rise. provides its readers with informative articles that tackle the latest in market moving #ASX small cap news, plus exclusive content you won’t find anywhere else. It is aimed at those with an interest in investing, market education, company performance, start-ups and much more. is the only media organisation operating under the strength of a Financial Services License and is backed by leading journalists and analysts all with brands of their own.

The website aims to inform, educate and entertain with content that drills down into the heart of financial matters.

Finfeed is a leading source of investor and market information, with everything investors need to know about how to invest written in a way that anyone can understand. 

Over the years, the website has expanded beyond exclusively reporting on small caps, to profile Australia’s leading ASX listed small, mid and large caps as well as some of the country’s most successful CEOs and business leaders to find out what makes them tick.

Every day you will find fresh content covering:

Fast Facts

Over 4,000 articles published

Over 2.3 Million Page Views and counting

Over 10,000 followers on social media

Subscriber list growing by 2% monthly

Thanks for subscribing!