Sunday, October 16, 2016

Money Where Your Mouth Is

For those who argue a Trump presidency will be a "disaster," I wonder how many of these people are selling equities in advance of the election. If one truly believes Trump would be a chaotic disaster in the White House, it would make tremendous sense to hedge this potential outcome. Even if one believes Hillary will win, one must acknowledge a reasonable chance (even as low as 25%) that Trump could win.

I doubt many are doing this, which I why I consider their predictions of disaster to be hyperbolic.

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