The only sure thing about this election was that neither party was going to #draintheswamp.
Middle America thought Donald would #draintheswamp ….what he did was #drainthebondholders and officially put Goldman Sachs is back in charge of the world.
Emperor Donald is old, an ass, a bully, selfish and he seems insane, but he has a throne to hand off to his kids and that trumps everything.
The easiest way to protect the throne financially was/is to hire Goldman Sachs.
That leaves the rest of us peasants two choices…hate Goldman Sachs or hate Goldman Sachs while owning the stock.
I mentioned I would do that myself on my blog and Stocktwits last week when the stock was at $210. Today it’s up another $7 to $226. It was $140 the night of the election.
(don’t chase it tomorrow please)
It is now an $87 billion company.
In a world of ‘Trumpflation’ Goldman Sachs could be a $200 billion company (that would still be $150 billion less than Facebook today).
I think it’s important to put some perspective on this historic bank run.
The ENTIRE banking sector is now up $300 plus billion since election which is approximately ONE Facebook.
Here is another look at the money moving out of FANG and into banks:
— Charlie Bilello, CMT (@charliebilello) Dec. 1 at 08:50 AM
As for the markets, the economy Donald Trump inherits next month includes:
1. Record high stock and home prices
2. Economy growing at record 3.2 percent
3. 4.9 percent unemployment
I doubt the numbers look this good in 4 years, but am spending like a good American.
As for today, I choose to be worried about bonds.
The bond market hates Donald Trump.
The Municipal Bond Market is in crash mode.
— David Fabian (@fabiancapital) Nov. 30 at 09:44 AM
In 10 days, when old white America walks to their mailbox to open their paper brokerage statements, they will throw up. They will call their brokers and scream. They might even panic.
I hope I am wrong.
Also published on Medium.