Agnieszka Nowak @Aganowak91: "𝐓𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐰𝐢𝐥𝐥 𝐟𝐨𝐥𝐥𝐨𝐰 𝐭𝐡𝐞..."

Luxembourg

𝐓𝐡𝐞 𝐦𝐚𝐫𝐤𝐞𝐭 𝐰𝐢𝐥𝐥 𝐟𝐨𝐥𝐥𝐨𝐰 𝐭𝐡𝐞 𝐧𝐨𝐢𝐬𝐞 𝐛𝐮𝐭 𝐲𝐨𝐮 𝐝𝐨𝐧’𝐭 𝐡𝐚𝐯𝐞 𝐭𝐨. I’ve been thinking about something lately. I sold my $TSLA (Tesla Motors, Inc.) stock before the US elections. Not because I don’t believe the company but I didn’t want to be exposed to that kind of volatility. Whatever Musk was saying, with whoever he was talking to, the stock was going wild. I am glad I could just tell that one stock and stop being exposed to the volatility. However…this got me thinking about something bigger. Look at what happens with Trump. Every single time he says something, the market moves. The market follows whatever he says. Unfortunately that is how it works right now. The problem is that he SAYS things and doesn’t always DO them. Not everything he promises actually happens but the market doesn’t care. It reacts anyway. Take the defense sector. When Trump recently talked about massively increasing U.S. military spending to around 1.5 $ trillion, defense stocks jumped immediately. $BA.L (BAE Systems plc ) surged around 6%, $LMT (Lockheed Martin Corporation) Martin rose as well. $NOC (Northrop Grumman Corp) Grumman gained around 4% and $GD (General Dynamics Corp) Dynamics 4-5%. All this happened because his words alone. Does that mean the war is starting tomorrow? Of course not. No budget was passed, no legislation was signed and no policy actually changed. But the statement itself was enough to move the entire sector. And this is only one of many examples, as we saw since he won elections, there is barely one week we can take off from him. So here is a trap…if I tried to avoid volatility in this case and react to every market move caused by what he says I would literally need to stop investing and sell my whole portfolio. Because market moves on his words and not on reality. And if I chase every reaction, I’m just selling and buying based on noise. That’s why you need a solid strategy. A real one. Because if you don’t have one, you will be buying or selling different stocks every time someone says something loud enough. The market will follow the noise but you don’t have to.