PRESIDENT TRUMP HAS JUST THROWN COLD WATER ON THE 3-WEEK RECOVERY RALLY THAT THE STOCK MARKET HAS BEEN ENJOYING.
ALTHOUGH TRUMP SEES HIS 25% TAX ON ALL AUTOS AND AUTO PARTS IMPORTED INTO THE UNITED STATES AS A MAJOR STEP IN FORCING MANUFACTURERS TO BUILD NEW PLANTS IN THE UNITED STATES, I HAVE THE IMPRESSION THAT IT WILL CAUSE MORE HARM THAN GOOD FOR THE ECONOMY.
THE POST-WW2 ECONOMY HAS EVOLVED INTO A WORLD WIDE INTEGRATED NETWORK OF CONSUMERS AND SUPPLIERS. DISRUPTING THAT NETWORK WITHOUT CAREFULL STUDY AND A RESULTING COMPREHENSIVE PLAN IS A MAJOR MISTAKE IN MY OPINION.
TRUMP HAS NOT DONE THE HARD WORK THAT IS NEEDED TO PREPARE THE ECONOMY FOR THESE SHOCKS.
LAYING OFF HUNDRED OF THOUSANDS OF GOVERNMENT WORKERS AT THE SAME TIME COULD BE A RECEIPE FOR DISASTER.
ALTHOUGH THIS IS NOT INVESTMENT ADVICE, I WOULD THINK THAT FOR ME: “HOUSTON, WE HAVE A PROBLEM.”