QUESTION: Mr. Armstrong; I take it your concern over Trump from the market perspective is the sheer uncertainty that is evolving. How do you see this playing out for the world economy?
Thank you. I agree. These people who hate Trump just hate him so passionately.
MRU
ANSWER: Markets do not like UNCERTAINTY. These people who want to see Trump gone have no clue what may result in the aftermath. My concern is global. This is far beyond Trump. We have chaos in Turkey, Argentina spilling over into other Emerging Markets. We have politicians trying to punish Britain and German companies asking what are they just nuts in Brussels? Britain is the BIGGESTmarket for Germany cars in Europe. We have building uncertainty in Southern Europe. We have the head of Australia playing the game of musical chairs. We have new political parties emerging in Canada and Ireland. We have private debt concerns in China. We have South Africa following the mistakes of Zimbabwe and we have major change sweeping the Middle East. The discontent in Iran is building toward yet another revolution and in Japan, Abe Economics is failing. South America is in turmoil which has spread even to Mexico.
In all honesty, throughout my career, there have been places that are in turmoil and it was crystal clear where capital would move. I honestly have to say I have NEVER witnessed a period quite like this. There is no place that is a safe haven at this point. The entire world is just coming unglued. All we can do is now rely on the computer for personal opinions will be renders probably the most dangerous things upon which to base forecasts.
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