By EconMatters
If Elections were held tomorrow, The Democrats would win the Presidential election and the Senate for sure, and maybe even the House of Representatives; it is going to be brutal for Republicans come Midterm Elections. Donald Trump is even hurting the business community with his policy initiatives.
Donald Trump will be slowly isolated in Washington and be a lame duck President in two years, most of the stuff Donald Trump blusters about will never see the light of day. The Global Economy will be in recession, and although he will not have caused it directly, he sure will not have helped the situation with his extreme policy approach, and ultimately he will serve as the easy scapegoat for laying the blame.
At this rate, even the business community will be tired of his dictatorial act, and multiple groups will band together and take him down. He will probably be the most impotent President serving out the last couple years of his term, that`s if he isn`t outright impeached before then. Things are going to get rather ugly given his incompetent cabinet makeup these four years; things are not shaping up good for financial markets and the Global Economy under Donald Trump. Financial Market Participants could not have gotten this more wrong after the election.
They are so completely off sides and unprepared for what is to follow over the next four years. I cannot think of a worse Price and Time Relationship to be this Long as a Market Participant. Given valuations what they are, Central Banks at the end of the Road, and a Global Trade War, with Geopolitical Event Risks off the Charts. And I didn`t even get to the unsustainable debt burdens of governments around the world, the end of the stock buybacks and dividends era, and baby boomers about to take out retirement funds from financial markets to live on for the next decade.
I would have thought that the 2008 Financial Crisis cleaned out a lot of the dead wood, i.e., incompetent money managers from the system in a purge effect, but it appears as if the dead wood was replaced with even stupider investors and more incompetent Dead Wood. The Decision Making, Critical Thinking Skills necessary for making intelligent investment decisions is sure a rare commodity these days in Financial Markets.
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