Like many other right-wing strongmen, but with less excuse, Donald Trump has no understanding of basic economics. Until recently, however, investors have been eager to give him the benefit of the doubt. The theory has always been that the “good” Trump–the one who supports tax cuts and deregulation for business–could always be trusted, while the bad, capricious, tariff-loving Trump would ultimately be restrained by the adults in the room and his own self-interest.
Personally, I never viewed this as a good bet, and the chickens are coming home to roost. The point of this post, however, is that investors aren’t going to give Bernie Sanders the same benefit of the doubt. If they were wrong in thinking Trump was one of them, they aren’t going to have any illusions about Bernie, because he makes no bones about despising them. And so, if you vote for Sanders, you do so with the certain knowledge that he’s going to damage the value of your investments if he wins; it’s only a question of how much, and for how long.
A note to my readers: I will be out of town for a few days rediscovering my roots in Ohio. Regular posting will resume on Monday.