Trump’s Wrecking Ball Pounding Down Value

There’s an old story by Lafcadio Hearn about a flood enveloping a bunch of dancers, oblivious on the dance floor but up to their ankles in the streaming waters gurgling around their feet. 

When will this joyous crowd fall off the floor and seek shelter elsewhere today? We’d ask traders on the floor of the Big Board, when do they feel satiated with buys and sells and go home to their loved ones for a hot supper? 

Past months, my portfolio positioning has wilted to 20% invested. I’m still solvent. This condition may be about to change. I stick 20% long while the market gurgles around my feet.

Worst case you can turn restive on your holdings, looking foolish holding onto General Electric and General Motors. What’s to do with Apple? Let Warren Buffett, supposedly the smartest guy in the room, put more capital into the oil sector, specifically OXY Occidental Petroleum (We’re talking multi-billions.) 

There’s something ludacris about Trump pulling the strings on everyone’s net worth with his power to tax. Consider, I fought for my country while Trump tapped his doctor for a note saying he was medically unfit for service. 

I was called up and served during the Korean War. North Korea is an arctic climate, but all we had to clothe ourselves were field jackets, leftovers from World War II. Later on, President Truman termed our fight a police action. This is what politicians do. They downsize wars to look good in print. 

There were no color TV sets as yet so the public paid no attention to the Korean conflict. By the time I was 22, I had seen too much, but, right or wrong, it’s my country. 

I still think about our President as an old draft evader who is now pounding my kidneys, making money managers look foolish. Don’t tell me I can sell out, go to cash but foot a huge tax bill. I don’t know anyone who quietly packs it in, settles his taxes,  then lives happily ever after. 

Is Trump, the wrecking ball, about to unhinge the western world and create a worldwide depression? An even money bet. 

Was it Marcus Nadler, my old professor at NYU who used to say, “Politics leads economics” I’m down to 20% invested long. Maybe for as long as President Trump holds the Oval office.