The United States can be divided into more than one country

Sheer crazy

I don’t usually comment on mania, but I do so this time because the person who said it, Jeffrey Kundluch is CEO of Doubleline Capital.

Says Kundlach America may be divided. He also explains how to invest in that decision, and predicts that Trump will win the election.

Donald Trump will win re-election, but no matter what the outcome of the presidential race, significant investor Jeffrey Kundlach said Monday that the United States could be seen collapsing into more than one country when it catches unrest and tough voters.

Can America lose faith in democracy? “People are strongly committed to the idea of ​​democracy, but China has massive growth and better infrastructure under the dictatorship,” Kundlach said. “What do we do when our results are low? Can we change in this regard? Yes, it’s possible. I think we’ll see significant changes in the next six years,” he said.

Now, Kundluch said, “I think we’ve going to go to an area with fat tails.” Raising inflation is like deflation or apparent deflation, he thinks.

“I hate long bonds, but I think you should still own some, in a deflationary environment, you want your portfolio to have that hedge,” he said.

There is no constitutional provision

There are no provisions for states to declare independence.

If a state declares independence, the United States will not allow that decision.

We can discuss whether to allow a state to break, but there is no way to invest in an end that is unlikely.

Fat Tails Vs Fat Stories

I agree with Kundlach about the potential for significant change and fat tails, but the fat he proposes is not the “story”.

Interestingly, the meaning of fat tails came up twice today.

Black Swan, a book about fat tails, brought up the subject today as mentioned Naseem Taleb blamed Trump Disability and Denial.

Mish