How to hedge against the coming Trump economic implosion?

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are continuing to invest in s&p 500 and are staying the course. I just don’t see the biggest companies allowing the entire US economy to go to crap, and the stock market is set up to benefit the very rich, who again, won’t let things get completely crazy. Maybe some dips, even large ones, but that’s ok.

This is the main reason I think the stock market won't implode. The super rich won't allow it to happen.

Can you enlighten us how “the super rich” will go about preventing an implosion?

It's not the "super rich", whoever they may be. It's investors large and small who have confidence in the potential they see in the companies they have invested in. Those companies, i.e. the market generally, are seen as either currently profitable or likely to become profitable, making the companies more valuable, and those who own them through their stock wealthier. Perceptions that the regulatory environment and the tax regime are both trending more favorably for businesses also supports investor optimism, which in turn supports demand for equities. Pessimism among the great unwashed masses has little effect on the markets; the investing class is who matters in this context.

I do also think if Trump’s policies start losing money for the rich in any significant way, they will figure out a way to get him out of there. No moral issues with him but once it hits them, they will. I believe this.

Walmart, Target, and Tesla are all losing massively under Trump. So, can you please provide more into your reasoning with this statement?

Yea I don't know where PP gets the idea that corporate America is anything but gelded. Trump's about to nationalize Intel and business leaders don't say a word.

[Anonymous]

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:

Anonymous wrote:We are continuing to invest in s&p 500 and are staying the course. I just don’t see the biggest companies allowing the entire US economy to go to crap, and the stock market is set up to benefit the very rich, who again, won’t let things get completely crazy. Maybe some dips, even large ones, but that’s ok.

This is the main reason I think the stock market won't implode. The super rich won't allow it to happen.

Can you enlighten us how “the super rich” will go about preventing an implosion?

It's not the "super rich", whoever they may be. It's investors large and small who have confidence in the potential they see in the companies they have invested in. Those companies, i.e. the market generally, are seen as either currently profitable or likely to become profitable, making the companies more valuable, and those who own them through their stock wealthier. Perceptions that the regulatory environment and the tax regime are both trending more favorably for businesses also supports investor optimism, which in turn supports demand for equities. Pessimism among the great unwashed masses has little effect on the markets; the investing class is who matters in this context.

I do also think if Trump’s policies start losing money for the rich in any significant way, they will figure out a way to get him out of there. No moral issues with him but once it hits them, they will. I believe this.

Walmart, Target, and Tesla are all losing massively under Trump. So, can you please provide more into your reasoning with this statement?

It's about expectations. Much of what happens in the economy is governed by expectations. Walmart, Target and Tesla all expect to earn more in the near future. The super rich all expect to get richer under Trump - that holds the economy up. It's the same reason the Great Depression happened in Oct 1929 - about 8 months after Calvin Coolidge was voted out of office after the Republicans were in office all of the 1920's. The expectation was the Coolidge would support the super rich and keep the economy propped up - and Hoover would not.