The Bond Market Hates Donald Trump

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:

Since election…$JPM: +17%$GS: +24%$MS: +23%$C: +15%$BAC: +29%…$FB: -8%$AMZN: -6%$NFLX: -8%$GOOGL: -7%

— 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.

Muni bonds have been a bit of a train wreck in November. Were also underperforming prior to that though. $MUB $SUB

— 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.