The ascent of Donald Trump suggests the all is not well with the general electorate. We suspect that his popularity stems from an environment in which all voters have had enough of the status quo. The Donald speaks his “mind”, and this groundswell of populist support is reflected not only in his rise to political power, but also is indicative of what is occurring in the U.K. and elsewhere. People are fundamentally stating that the political system is flawed, ineffective, and self serving. We would only hope that this attack political correctness would spill over into a real critical analysis of the Fed and its efficacy.
In short, we need a Donald for capital markets. We understand that Fed policy over the past eight years has been an attempt to alter investor perception, but we believe that this monetary science experiment is close to its peak. The experiment will end, not for lack of trying but more specifically because the perception of all central banks will ultimately be permanently damaged. In order to avoid an abrupt dislocation in capital markets, there has to be a disrupter with regards to the omnipotence of the Fed.
The Informed Contrarian 