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ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION

January 6, 2019 | Triggered

A best-selling Canadian author of 14 books on economic trends, real estate, the financial crisis, personal finance strategies, taxation and politics. Nationally-known speaker and lecturer on macroeconomics, the housing market and investment techniques. He is a licensed Investment Advisor with a fee-based, no-commission Toronto-based practice serving clients across Canada.

Poor Ryan. My fancy portfolio manager buddy did two things on the weekend guaranteed to trigger the steerage section. (a) He was optimistic. (b) He dissed Trump.

As a result he was called a 1%er out-out-touch millionaire dork with questionable creds, a dodgy track record and a flurry of silly charts that prove diddly. ’Even a 12-year-old knows what’s coming,’ one poster cried, while others accused him of watching too much CNN, reading (and believing) lame-stream news and secretly worshiping Hillary and other global elitists who crave open borders and middle-class slavery. These folks hero-worship the Trumpster, rooting for disruption, financial market mayhem, protectionism and a giant ‘reset’.

Most people coming here (99% of them) never leave a comment. Thus, it’s hard to know if the rabble below is representative of the majority. But patterns have emerged over the past couple of years.

When stocks wobble, markets shed 2% or 3% in one session, or other financial asset classes take a temporary drubbing, the herd’s convinced everything is going to zero. Actually, they want it. An investment portfolio is portrayed as something only the privileged few in society can establish – folks who probably got rich trampling others, or collecting obscene government pensions. The same critics decry public companies buying back their own stock to increase shareholder value, thinking it’s market manipulation. And there’s a whole mob of folks angry that the Ryans of this world collect plump quarterly dividends from the banks they struggle to pay mortgages to. If Trump can tear this down and punish investors, he is seen as delivering rough justice.

So when market volatility arrives, they like it. When Trump causes that volatility – by threatening the Fed chair, firing his cabinet members, making military decisions in Tweets, shutting down the government or inflaming a trade war – they justify that. In fact, they lap it up. Trump as disruptor.

Second, the political polarization so in evidence in the comment section of late didn’t exist for the first eight years of this pathetic blog’s tortured existence. Now there’s a daily battle between the deplorables and the globalists, between Fox News and CNN, between the new ‘nationalists’ and the ‘progressives.’ The Wall has brought out more idiot comments than any other issue. One side says it’s critical to keep out the migrant hordes with Trump correct to call it a national emergency. They claim anyone opposed supports drugs, terrorists and completely open borders. The other side says in a modern world nobody builds walls between countries, most illegals come on airplanes and there’s a connection between Trump’s wall, the Muslim ban, ignoring Yemen and yanking out of Syria. He’s a racist. His pre-election rant about America being ‘invaded’ by a caravan of moms and kids proved that.

Prior to Trump being elected, I deleted (at most) four or five comments a week that were racist, anti-immigrant or prejudiced against a religion. Chinese dudes used to be the fav target, and it all had to do with house prices. Now not a day passes without dozens of deletes. The ascendancy to the most powerful position in the world by a man who thinks in tribal terms, and is unafraid to say so, has impacted humanity.

All financial markets really care about (and fancy portfolio managers who ride them) is making money. For that you need an expanding economy, profitable companies, employed consumers, tame inflation, modest rates and certainty. As Ryan pointed out on the weekend, we have all of those things, save the last. And Mr. Trump has deliberately – with the wild backing of his supporters – wiped certainty away.

There is no recession on the horizon. No global war. No reason to believe this is 2008, 1987 or 1929. But there is a disruptor in office responsible for a trade mess, political instability, rising input costs and a growing sense of unease as to how this ends. No, not the global economy or the growth in financial assets. The president. He will not survive. Trump will quit, be challenged from within his party, be impeached, defeated or convicted. The only real question is whether that will martyr the man, creating more instability, or if a failed experiment in 19th-Century economics will vanish with him.

This blog will continue until we know. Comment if you want. But be constructive.

And be sure to visit the GoFundMe page I’ve set up for Ryan. Bullet-proofing a Porsche ain’t cheap, you know. Poor guy.

Poor Ryan. My fancy portfolio manager buddy did two things on the weekend guaranteed to trigger the steerage section. (a) He was optimistic. (b) He dissed Trump.

As a result he was called a 1%er out-out-touch millionaire dork with questionable creds, a dodgy track record and a flurry of silly charts that prove diddly. ’Even a 12-year-old knows what’s coming,’ one poster cried, while others accused him of watching too much CNN, reading (and believing) lame-stream news and secretly worshiping Hillary and other global elitists who crave open borders and middle-class slavery. These folks hero-worship the Trumpster, rooting for disruption, financial market mayhem, protectionism and a giant ‘reset’.

Most people coming here (99% of them) never leave a comment. Thus, it’s hard to know if the rabble below is representative of the majority. But patterns have emerged over the past couple of years.

When stocks wobble, markets shed 2% or 3% in one session, or other financial asset classes take a temporary drubbing, the herd’s convinced everything is going to zero. Actually, they want it. An investment portfolio is portrayed as something only the privileged few in society can establish – folks who probably got rich trampling others, or collecting obscene government pensions. The same critics decry public companies buying back their own stock to increase shareholder value, thinking it’s market manipulation. And there’s a whole mob of folks angry that the Ryans of this world collect plump quarterly dividends from the banks they struggle to pay mortgages to. If Trump can tear this down and punish investors, he is seen as delivering rough justice.

So when market volatility arrives, they like it. When Trump causes that volatility – by threatening the Fed chair, firing his cabinet members, making military decisions in Tweets, shutting down the government or inflaming a trade war – they justify that. In fact, they lap it up. Trump as disruptor.

Second, the political polarization so in evidence in the comment section of late didn’t exist for the first eight years of this pathetic blog’s tortured existence. Now there’s a daily battle between the deplorables and the globalists, between Fox News and CNN, between the new ‘nationalists’ and the ‘progressives.’ The Wall has brought out more idiot comments than any other issue. One side says it’s critical to keep out the migrant hordes with Trump correct to call it a national emergency. They claim anyone opposed supports drugs, terrorists and completely open borders. The other side says in a modern world nobody builds walls between countries, most illegals come on airplanes and there’s a connection between Trump’s wall, the Muslim ban, ignoring Yemen and yanking out of Syria. He’s a racist. His pre-election rant about America being ‘invaded’ by a caravan of moms and kids proved that.

Prior to Trump being elected, I deleted (at most) four or five comments a week that were racist, anti-immigrant or prejudiced against a religion. Chinese dudes used to be the fav target, and it all had to do with house prices. Now not a day passes without dozens of deletes. The ascendancy to the most powerful position in the world by a man who thinks in tribal terms, and is unafraid to say so, has impacted humanity.

All financial markets really care about (and fancy portfolio managers who ride them) is making money. For that you need an expanding economy, profitable companies, employed consumers, tame inflation, modest rates and certainty. As Ryan pointed out on the weekend, we have all of those things, save the last. And Mr. Trump has deliberately – with the wild backing of his supporters – wiped certainty away.

There is no recession on the horizon. No global war. No reason to believe this is 2008, 1987 or 1929. But there is a disruptor in office responsible for a trade mess, political instability, rising input costs and a growing sense of unease as to how this ends. No, not the global economy or the growth in financial assets. The president. He will not survive. Trump will quit, be challenged from within his party, be impeached, defeated or convicted. The only real question is whether that will martyr the man, creating more instability, or if a failed experiment in 19th-Century economics will vanish with him.

This blog will continue until we know. Comment if you want. But be constructive.

And be sure to visit the GoFundMe page I’ve set up for Ryan. Bullet-proofing a Porsche ain’t cheap, you know. Poor guy.

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January 6th, 2019

Posted In: The Greater Fool

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