President Trump’s tariff policy, which may start a trade war, is moronic and horrifying.. It will lead to higher inflation, market volatility, and global instability… and 100 years of U.S. history demonstrates why. There are, however, ways to protect your investments.
Porter reminds readers of the tariff, enacted more than 100 years ago, that decimated farmers and that set in motion the economic forces that led directly to the Great Depression. Sadly, he says, the current administration seems not to have learned from what history taught us.
At current valuations, it is virtually certain that investors buying the S&P 500 – especially the largest and most overvalued stocks – will be severely disappointed since future returns for at least the next decade will be paltry.
A president threatening to set up a second revenue agency for the federal government isn’t good news. It’s horrifying, Porter reports, on the news that the incoming Trump administration has proposed an External Revenue Service.
Similar to Steve Jobs, Porter believes, Donald Trump has a “reality distortion field.” Trump’s reality distortion field, however, is blinding his supporters into thinking that he can return broad prosperity to the middle class without major dislocations in the markets.