you could be too)
After an election season, inauguration, semi-messy transition and a weird first month it appears the dust is beginning to settle and a state of normalcy is beginning to take hold. There remain plenty of pitfalls and Team Trump seems determined to find them all. Uncertainty and chaos have traditionally been bad for stocks yet the markets have soldiered on powered by promises and hope although the expectation timeline begins to be extended. Through all this, I’ve remained steadfast in my belief that at its core there is a logic that investors can incorporate into their strategy. I believe this nugget has been identified and it’s called diversification.
Don’t get me wrong, on the surface there are significant differences that being compared to Trump is akin to a four-letter word. A few examples would be:
- His over-reliance on leverage to attain success. Evidenced by his four bankruptcies.
- His lack of respect for women. With a wife and grandaughter I’m not amused.
- His willingness to mock the disabled. Being disabled myself, I fail to see the humor.
- The embellishment of his business prowess. During my career, I found that generally when one trumpets their own accomplishments there was likely substance lacking.
Yet there is no disputing his success as a salesman – other than magnitude ($3B vs $10B). CNN recently performed an analysis of his empire which broadly can be bucketed into four categories; Management, Licensing, Ownership and Real Estate. Perhaps this is why they were recently blackballed from press briefings? Regardless, between them and Wikipedia, a clearer picture emerges of the geographic diversity of the organization.
To my surprise, I have holdings in countries in common with the Trump organization and a few he doesn’t. The research is incomplete but there appears to be a correlation between a Trump attack and the foreign market reaction. I’m sure there will be more to follow.
|France (St. Martin)||8|
|St Vincent and the Grenadines||4|
|NOTE: Blue – Common, Red – Mine only, Red (italicized) – Under Consideration|