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"Trump becomes the auto industry's No. 1 preoccupation" The new biggest risk to our wealth.

The headline quoted above is from todays WSJ. The question is one that I pose. We often worry about all manner of risk but now perhaps for the first time ever political risk outweighs them all. I fear that lack of adults in charge of our government pose the biggest risk to our wealth today. Please note that this is not a question of ideology but of good old fashion common sense. The folks in charge of our government have the ways and means to knock the whole house of cards down and perhaps would relish the collapse of the system. It might be more fragile than we assume. I am wondering if any here share my concern. TO REPEAT,,,, not Dems vs GOP,,,, just a question of not enough adults in the room.

Comments

  • edited January 2017
    Your comment about "relishing the collapse of the system..." suggests to me your post IS based on ideology...

    But as to 'political risk', I guess this -- or ANY POTUS -- is not elected to be the President of the NYSE. He/she is voted to be President of the United States. A couple prospective examples:

    a)The current POTUS has suggested drug prices are 'too high'. Bringing down drug prices would be a seeming obvious 'negative' for Big Pharma & Biotech earnings. OTOH, most Americans would probably be in favor of doing something to lower drug prices (and the cost of healthcare generally). So corp earnings and the wellfare of patients are probably conflicting interests.

    b) Similarly, a lot of tech- and mftg companies have really embraced the wage-arbitrage model of shipping jobs overseas, paying 3rd world wages to build stuff -- then importing the products back to the USA and charging 1st world prices. This global wage-arbitrage has, no doubt, done wonders, for gross-profit margins (and with it, income inequality), but a lot of folks think that economic development model is flawed.

    Obviously, if these 'political risks' are of concern, best to avoid directing investment dollars to areas which might be impacted.
  • Edmond said:

    Your comment about "relishing the collapse of the system..." suggests to me your post IS based on ideology...

    I have to agree with you on your assessment.

    The 'adults' have left the room a long time ago - never to return.

    http://people.uncw.edu/kozloffm/glubb.pdf

    http://www.nairaland.com/1494266/fate-empires-sir-john-glubb
  • Mr. Hardy. A great link. As a former History grad student I appreciate analysis that looks further than the last quarter. My question, beyond politics, is whether the uncertainty of adult behavior roil the markets and hasten the inevitable. After all, markets hate uncertainty and when corporations and foreign governments start responding to leadership by tweets anything might happen.
  • larryB said:

    Mr. Hardy. A great link. As a former History grad student I appreciate analysis that looks further than the last quarter. My question, beyond politics, is whether the uncertainty of adult behavior roil the markets and hasten the inevitable. After all, markets hate uncertainty and when corporations and foreign governments start responding to leadership by tweets anything might happen.

    All I can suggest is don't believe all your hear in the news media. Trump isn't the wild man he is presented as by Hollywood/News media/Dems. If anything for the US worker; he may stem the losses for awhile. But, the decline will continue. The decisions made in the past determined the course we are on.

  • I think this is a question of follow through. If his tweets are followed consistently with action then political risk would seem to be high. If his tweets are him blowing smoke, then I would expect the market to figure it out and ignore them.

    Nick de Peyster
    Undervalued Stocks
  • edited January 2017
    Hi @DanHardy and et al.

    You noted: "All I can suggest is don't believe all your hear in the news media. Trump isn't the wild man he is presented as by Hollywood/News media/Dems."

    >>>Is one supposed to discard what is uttered or tweeted by/from any political party in power in this country??? Current personnel being those who are in a position to "speak/tweet" their thoughts or representations of information and data into the public world.

    What do the citizens do with what we have seen and heard spoken/tweeted through the recent political campaign? What do the citizens do with the comments and statements of the past few days from the new administration and its representatives? This wasn't Hollywood/News Media/Dems; I actually watched and heard. My first review is that the current administration is very disappointed that all do not see "their light". Although their political party won, they really seem to be in turmoil that not everyone is in their boat and criticism will not be tolerated. Very disappointing in my eyes from these adults.

    Biased, am I? No, the last party in political power fell down in many places and placed their spin(s), too. We citizens remain in the realm of fine tuned marketing; the ultimate info-mercial continues to attempt to shape thought and processes to move a political leaning.

    I personally remain in search of decent folks who become elected, from the local level to the highest positions in this country.

    NOTE: the above is indeed related to investing going forward for this house. It appears many rocky pathways will not be fixed and new ones will form. 'Course, this house will have to deal with the investment ride as it presents itself.

    Regards,
    Catch
  • catch22 said:



    What do the citizens do with what we have seen and heard spoken/tweeted through the recent political campaign? What do the citizens do with the comments and statements of the past few days from the new administration and its representatives? This wasn't Hollywood/News Media/Dems; I actually watched and heard. My first review is that the current administration is very disappointed that all do not see "their light". Although their political party won, they really seem to be in turmoil that not everyone is in their boat and criticism will not be tolerated. Very disappointing in my eyes from these adults.

    Biased, am I?

    You need to stop thinking and associating traditional politician characteristics/standards to Trump. Mitt R. was made to look like a fool by the media/Hwood because he allowed himself to be led by those standards and the media/Hwood.

    Research Trump's history including Roy Cohn, to get some understanding of his actions.

    With his tweets etc he is going around the media/Hwood to get his message out and making the media less important. Also, he uses them to control the discussion.

    Apply the Obama standard/question to what you see and hear; e.g. when Obama did things at the start of his admin. that the Rs didn't like he said he won, elections had consequences. Obama had the support of Hwood/media and his actions were put in a positive light.





  • Howdy @DanHardy
    K. I'm going to attempt to remove from brain memory whatever I should have not heard directly from the "horse's mouth(s)".
    I was getting ready to leave anyway; so now may be as good a time as any.
  • Trump is a businessman and not a politician. This is becoming clearer as his picks for positions are based mostly on experience and not favors. There are a couple of choices that may not exactly fit the mold like Perry for SOE, but in all good choices. I was pleased to see that Dr Sebastian Gorka has been asked and most likely has accepted a position not yet named. (Security?). Brilliant mind.

    A year from now we will see how things have changed or progressed. Nothing is instant.
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