Acute insanity
I don’t usually comment on acute insanity but this time I do so because the person who said, Jeffrey Gundlach is the CEO of Doubleline Capital.
Gundlach says the US could split up. It also explains how to invest in that outcome, and he predicts that Trump will win the election.
Donald Trump is likely to win re-election, but regardless of the outcome of the presidency, the U.S. may find itself broken in more than one country because of voter unrest and aggression, well-known investor Jeffrey Gundlech said Monday.
Can America lose faith in democracy? “People are committed to the idea of democracy and yet, under totalitarianism in China, there has been a great deal of development and better infrastructure.” What do we do when our results are low? Is it possible that we “Yes, it is possible. I think we will see significant changes in the next six years, including the entry of the US into more than one country,” he said.
Now, Gundlech said, “I think we’re going to go into an area that has fat tails.” He thinks that skyscraper inflation is likely to be sterile or obvious deflation.
“I hate long bonds, but I still think you own some, and in a deflationary environment, you want to have that hedge in your portfolio,” he said.
There is no constitutional provision
There is no provision for states to declare independence.
If a state declares independence, the U.S. It will not allow the result.
We can discuss whether a state should be allowed to break, but there is no way to invest in a result that has no consequences.
Fat Tails vs Fat Stories
I agree with Gundlach on the possibility of significant change and fat tails but the fat “tail” that he proposes.
Interestingly, the topic of fat tails has come up twice today.
The author of Black Swan, a book about fat tails, brought up the subject today, as Naseem Taleb noted in Trump’s disqualification and denial of the allegations.
Mish
