The Bloomberg Effect

The economy is strong and the stock markets continue their frenetic upward journeys. This is not very likely to change over the next 10 months, which means that it will prevail at and up to the 2020 Presidential election. What started as a recovery from the worst economic recession since The Great Depression during the 2nd half of Barak Obama’s first term, continued on into the 2016 election, which graced us with Donald Trump as our 45th President, as a full-on Bull Market. His tax cuts on corporate profits laced bull’s feed with copious amounts of amphetamines, which shifted the recovery into hyperdrive. The markets will, as they always do, correct themselves to more appropriate values, but like a speeding train, it takes some time to harness enough gravity for them to slow down. Trump’s economic policy pushed the Financial Markets to levels which far exceed the values of their underlying constituents, giving them much further to fall when the bubble bursts. The challenge is how to convey this message to Trump supporters so that they will understand it, and more importantly, believe it. This is monumental given that most Americans wouldn’t know a key economic indicator if they tripped over one, and if they were Trump Supporter who took and passed ECO 101, would, after falling face first, curse at it and call it “fake.”

Americans have never denied a second term during a strong economy, NEVER. We’re seeing this phenomenon unfold before our eyes in Trump’s approval rating, which heretofore languished between 35 and 42%, is now at a solid 49%, which while much lower than other Presidents nearing the end of their first terms during a stong economy, is yet another reason for his administration to celebrate. The Administration’s spin on his impeachment acquittal will no doubt embolden this President to up-ratchet his abhorrent behaviors, causing his approval to well exceed 50%.

Bottom line: a perfect storm is forming and is headed our way. Donald Bone Spurs Trump could very well win re-election, and there’s nobody in the Democrat field that is strong enough to take him on, that is everybody but Mike Bloomberg.

Mike Bloomberg created the paradigm for how financial data is mined and presented to investors. His apps are the “Facebook of Wall St.” He accomplished this by working with, not taking on, Salomon, Goldman, Merrill, JP Morgan, Citicorp and Morgan Stanley Global financial giants.

Think of the levels of industry knowledge, negotiation skills, mental permanence, persistence, and overall toughness required to pull this off and make $billions in the process. I expect that most would agree with this, all but the billionaire piece. Why is it so wrong to be fairly compensated for taking and managing risk? This mentality flies in the face of the tried and true economic rule governing capitalism; the strong and direct relationship between risk and reward. Accepting the veracity of this rule is what makes America great, and Bloomberg embodies this rule!