The Art of the Deal: How Trump's Negotiation Style Is Reshaping Markets

April 28, 2025 | Season 7 | Episode 16 President Trump"s negotiation tactics are reshaping financial markets, and understanding his playbook might be your best investment strategy. His approach, detailed in "The Art of the Deal," reveals a philosophy of aiming high and pushing relentlessly to achieve his goals. As he states, "I play to people"s fantasies... a little hyperbole never hurts." This perspective helps explain the market"s volatility following his tariff announcements and subsequent modifications. Surprisingly, it"s professional investors – not individuals – who"ve been fleeing during recent market turbulence. Hedge funds have sold over $1 trillion more shares than they"ve purchased this year, while everyday investors have steadily bought approximately $50 billion monthly. This upends Wall Street"s traditional "smart money vs. dumb money" narrative. Individual investors, increasingly invested through 401(k)s and index funds, have demonstrated remarkable stability – Vanguard reports 97% avoided making trades during early April"s market volatility. Gold has emerged as 2024"s standout performer, appreciating approximately 30% year-to-date to around $3,400 per ounce. Over the past two decades, SPDR Gold Shares has surged 630%, marginally outperforming the S&P 500. This contradicts conventional wisdom that productive assets should outperform non-yielding assets over time. For investors considering gold now, mining stocks like Barrick Gold and Newmont Mining might offer better opportunities than the metal itself. Municipal bonds represent another opportunity area, with long-term munis yielding about 95% of comparable treasuries – essentially offering tax exemption benefits at minimal cost. For investors in tax brackets of 20% or higher, these bonds can generate tax-equivalent yields of 6-8% in high-quality assets. As we navigate an environment of heightened uncertainty – with international trade negotiations, geopolitical tensions, and domestic policy shifts – understanding these market dynamics becomes essential for making informed investment decisions that align with your long-term goals and risk tolerance. ** For informational and educational purposes only, not intended as investment advice. Views and opinions are subject to change without notice. For full disclosures, ADVs, and CRS Forms, please visit https://heroldlantern.com/disclosure ** To learn about becoming a Herold & Lantern Investments valued client, please visit https://heroldlantern.com/wealth-advisory-contact-form Follow and Like Us on Youtube, Facebook, Twitter, and LinkedIn | @HeroldLantern