How Trump Bounced Back

From nearly a half billion dollar fine to multibillionaire status. [The Rude Awakening] April 02, 2024 [WEBSITE]( | [UNSUBSCRIBE]( How Trump Bounced Back [Sean Ring] SEAN RING Dear Reader, Even I lost track of this Trump fine/trial/bail thing. So, to catch myself up with it, I thought I’d summarize it for you. It looks like the once and future president is going to get out of whatever New York City’s ludicrous “justice” system has in store for him. It's been a wild ride for The Donald over the past year, but the former president has pulled off an almost impossible financial comeback. Despite being hit with a massive $454 million civil fraud judgment, Trump has paid the fine and dramatically increased his net worth to the point where he is now considered one of the 500 wealthiest people in the world. The $454 Million Fraud Judgment In February of this year, a New York judge ordered Trump, his company, and others to pay $454 million in penalties due to a civil fraud case brought by the New York Attorney General's office. The judge found that Trump and his associates had systematically inflated the value of his assets over a decade to obtain more favorable loan and insurance terms. The judge ordered Trump to pay around $355 million in disgorgement, the return of ill-gotten gains, plus over $98 million in prejudgment interest. Trump was also banned from serving as an officer or director of any New York-registered business for three years, and his sons Donald Jr. and Eric were banned for two years. It seemed like an insurmountable blow to Trump's finances at the time. Mr. Wonderful Defends Trump Kevin O'Leary, of Shark Tank fame, called the judge's ruling a "rogue settlement" and said it should be "repealed" through the appeals courts. He believes the judge went "far beyond the norms of the law" in his ruling against Trump. O'Leary argued that the ruling and potential seizure of Trump's assets would damage the "American brand" and undermine investor trust in the US economy. He said it would cause "collateral damage" when raising money globally. O'Leary criticized the short 27-day deadline for Trump to post the $454 million bond, saying Trump should have been given more time to "come up with the cash." He framed it as an attempt to steal Trump's assets. More broadly, O'Leary defended Trump by claiming that inflating asset values is a common practice among "every real estate developer everywhere on Earth" and has "never, ever been prosecuted" before. He implied Trump was being unfairly singled out. In truth, real estate investors either inflate (to get bigger loans) or deflate (to pay lower taxes) depending on their intent. But banks always base their lending on their own valuations. In this case, Trump’s bank loaned money to him, and he paid it back. No one lost money or was defrauded, which is why this case stinks to high heaven of politics. Then, The Big Man Upstairs answered The Donald’s prayers. URGENT BROADCAST UPLOADED]( [Click here to learn more]( A new opportunity is emerging that’s even bigger than Bitcoin. It’s an idea I feel so strongly about, that I even invested $100,000 of my personal wealth into it. I just uploaded an urgent broadcast that explains why... Along with [my BRAND-NEW crypto prediction]( how you could get in position for life-changing wealth potential. [Watch My New Broadcast: Urgent Update To My Crypto Thesis]( [Click Here To Learn More]( The SPAC Merger Miracle Just a few months later, Trump pulled off a stunning financial turnaround. The key to his comeback was the successful merger of his social media company, Trump Media & Technology Group, with a publicly traded special purpose acquisition company (SPAC) called Digital World Acquisition Corp. If you’re unfamiliar with SPACs, they are a type of investment vehicle created to raise capital through an initial public offering (IPO). The SPAC then uses those funds to acquire or merge with an existing private company, effectively taking that company public without going through the traditional IPO process. In the case of Trump's SPAC, the merger caused shares of his Truth Social platform to skyrocket more than 35% on the first day of trading on the Nasdaq, closing at $49.95 per share. At the time of writing, it trades at around $48.36. Trump's Massive Stake in the SPAC And here's where things get interesting for Trump. As part of the SPAC merger, he was granted 78.75 million shares in the newly combined company. Based on the current stock price of $48.36, Trump's stake in the company is now worth a staggering $3.8 billion. According to the latest figures, this massive influx of wealth has dramatically increased Trump's overall net worth, pushing it to an estimated $6.4 billion. That's right, the man who was just hit with a $454 million judgment is now considered one of the 1,000 richest people in the world. It's a remarkable turnaround, especially considering that Trump's net worth was estimated at just $2.6 billion before the SPAC merger. So, in a few months, his net worth has more than doubled, thanks entirely to the “success” of his Truth Social platform. Overcoming the $454 Million Judgment Of course, the $454 million judgment against Trump is still in place. But thanks to the SPAC merger, he has the financial resources to pay that fine without breaking a sweat. In fact, when Trump's lawyers initially appealed the judgment, they argued that posting the full $545 million bond (120% of the $454 million judgment) was a "practical impossibility" for Trump, as he simply didn't have that much cash or liquid assets available. The judge ultimately agreed and reduced the bond amount that Trump had to post to stay the collection of the judgment during his appeal to a much more manageable $175 million. This was described as a "victory" for Trump, significantly reducing his upfront financial burden. And with his newfound $3.8 billion stake in the Truth Social SPAC, paying off that $175 million bond is likely little more than a minor inconvenience for Trump. Heck, he could pay the entire $454 million judgment outright without even making a dent in his overall net worth. The Broader Implications Trump's remarkable financial comeback has broader implications beyond just his wealth. It also speaks to the power and potential of the SPAC market, which has become an increasingly popular alternative to traditional IPOs in recent years. While the SPAC market has faced increased regulatory scrutiny and a decline in popularity in 2022 due to poor performance, Trump's success with his Truth Social SPAC shows that there is still significant upside potential for savvy investors and entrepreneurs. It also represents Trump's ability to bounce back from adversity. Despite facing a barrage of legal challenges and setbacks, including the $454 million fraud judgment, he has managed to survive and thrive. His newfound multibillionaire status will encourage him as he continues to wield influence in the political and business spheres. Wrap Up Donald Trump's journey from a $454 million fraud judgment to multibillionaire status is a remarkable story of resilience, financial acumen, and the power of innovative investment vehicles like SPACs. While his critics may never forgive him for his past transgressions, there's no denying that The Donald has once again proven himself a formidable force in business and finance. This incredible event has made The Once and Future President more likely than ever. All the best, [Sean Ring] Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( In Case You Missed It… Headline [Sean Ring] SEAN RING March 2024 Monthly Asset Class Report The SPX, Nasdaq, and Gold all hit monthly all-time highs. The Russell 2000 ETF (IWM) rose to 210, confirming strong support for the big boys’ rally. Bitcoin is trading at just under $70,000, as I write this. Even bonds have managed to hold their ground this month. Folks, welcome back to the Everything Rally! Just get long and stay long, and all your dreams will come true… What’s even more exciting is thinking about Jay Powell’s imminent rate cut. To support Biden’s utterly failing campaign or Treasury Secretary Yellen’s incredible spending, Powell will cut rates in either June or July. Once that happens, we’ll have the final goosing of the market for this cycle. Then, my bullish attitude will almost certainly change. Until then, gather ye rosebuds while ye may! With that in mind, let’s get to the charts. S&P 500 [Monthly Asset Report] ***NEW MONTHLY CLOSE RECORD OF 5,254.35*** From last month: Looking at this chart, there’s no reason in the world to be short. We may take a breather in the coming weeks, but I’d still participate in this rally. The long-term target remains 6,000. Nasdaq Composite [Monthly Asset Report] ***NEW MONTHLY CLOSE RECORD OF 16,379.46*** Absolutely no reason to get short here. The long-term target is 17,350. Russell 2000 (Small caps) [Monthly Asset Report] The Russell 2000 ETF took off and finished at 210.30. It’s not a record, but an indication of the strong market underlying the big boys. New target is a whopping 281. Big upside. The US 10-Year Yield [Monthly Asset Report] Still heading up until further notice. But I think the Fed cuts in June or July. This is come down, hard, then. Dollar Index [Monthly Asset Report] Not much going on here. I’d like to see a dollar drop, and that may happen in early summer, thanks to the Fed’s rate cuts. USG Bonds [Monthly Asset Report] Only moved a marginal bit up to 94.31. It may remain rangebound, but the best guess at the next target is 90. Investment Grade Bonds [Monthly Asset Report] LQD rebounded here. This may be a consolidation, before heading to higher ground. If it can remain elevated until the Fed rate cuts, we may see a big move to the upside. High Yield Bonds [Monthly Asset Report] Literally finished the same price as last month. From last month’s commentary: It can’t seem to get over the 77.50 hump. The upside target is in the 90s. I’d still be wary of a minor reversal if we don’t see an upside breakout soon. Real Estate [Monthly Asset Report] [Biden Admin Furious Over This New “Alternative” Currency]( Take a close look at this photo: [What you see here is a new “alternative” currency that’s taking America by storm…]( One which could ruin Biden’s CBDC plans. It’s already popping across the nation… including Utah, New Hampshire and Nevada. [If you’re worried about Biden Bucks then you must watch this short 2-minute video that breaks down how this “alternative” currency works…]( [Click Here To Learn More]( Again, barely moved. From last month’s commentary: Put a hold on that reversal I called last month. We may be heading back up. The first target is 89, then 94. Energy: West Texas Intermediate (Oil) [Monthly Asset Report] Last month, I called 83 and here we are. Now, we target 90. Base Metals: Copper [Monthly Asset Report] We finally got our big move up, tempered by a move down in the last week. 4.30 is the next target. Precious Metals: Gold [Monthly Asset Report] ***NEW MONTHLY RECORD CLOSE OF $2,238.40.*** $2,609 is our new target, but it may take a few months to get there. Precious Metals: Silver [Monthly Asset Report] Up $2 from last month. When silver awakens, watch out! Above $26, and it’ll start to chase, and then surpass, Gold’s performance. GIDDYUP! Cryptos: Bitcoin [Monthly Asset Report] Another huge month for Bitcoin. We’re at nearly $70,000. Theoretically, the sky’s the limit. But my charts are looking for a slight pullback to $66,500. However, I’m still bullish on Bitcoin and crypto. Cryptos: Ether [Monthly Asset Report] We were up about $200 this month in Ether, but we’ve had a pullback. Next target is $4,400. Trad Asset Class Summary [Monthly Asset Report] Commodities are back, and surging. They were up 4.76%. The SPX finished second, with a 2.28% return. Oddly enough, the dollar also finished positively, up 0.45%. Bonds even got in on the action, albeit a little, gaining 0.36%. Crypto Class Summary [Monthly Asset Report] Dogecoin, Litecoin, and Bitcoin all were up double digits in March. Ripple was up 4.70%, while Ether finished up 2.20%. Monero was the loser in March, down 8.10%. Wrap Up Stocks, crypto, and gold. It’s the same simple formula from last month. Long live the rally! Finally, let’s take a moment, courtesy of the Twitterverse: [Monthly Asset Report] All the best, [Sean Ring] Sean Ring Editor, Rude Awakening Twitter: [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2024 Paradigm Press, LLC. 1001 Cathedral Street, Baltimore, MD 21201. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. 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