Is the smoke detector working?

Trumpexit: Another strategic portfolio shift

Earlier this year, due to Brexit, I made a strategic shift in my portfolio by pulling out of a UK-heavy fund... and it worked out well.

With the election of Trump, comes Trump’s policies... one of which is cutting taxes and NOT cutting spending... the typical assinine and non-conservative Republican fiscal policy of the past decade or two.

This directly affects one fund I have... a specialty real estate fund with heavy US real estate presence. That fund has done FABULOUSLY since 2009.


However, I believe the party is coming to an end mainly because of Trump’s stated fiscal policies has led to a situation well described in these two articles:

Even the variable rate on the mortgage for my own home went up a bit even though I’m in Canada. And I’m expecting rates to go higher through 2017.


This will likely be BAD when it comes the returns for a real estate heavy fund that also has the majority of assets in North America.

Thus, I’ve just made another strategic move... pulled out of the real estate fund, moved the money into a conservative bond fund and wait out the real estate shakeout that I think is likely to happen next year.


The ironic thing about this situation is that Trump made the bulk of his wealth from real estate. And it’s his party’s policies that will likely result in hurting the real estate business. Obama’s policies were far more beneficial for Trump’s wealth than Trump’s own Republican party policies.

Of course I’m fully expecting Trump and his gang to be too stupid to understand this.


I could be wrong about this... and I would actually prefer to be wrong.

It will be interesting and a little scary to watch how 2017 will play out.

Given how politically inept I see him being over a simple phone call from Taiwan, it doesn’t bode well for next few years.

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