President Trump may be fighting more than just his political enemies if he wants to make America great again…
He might have to fight fate as well…
• For the past 110 years, a recession has occurred after every two-term President
• 8 of the last 11 recessions have coincided with the first term of a new President
• Every Republican President since Teddy Roosevelt has endured a recession in their first term
And President Trump may be tempting fate with his aggressive economic agenda.
Despite a national debt of $20 trillion and growing, Trump wants to embark on a massive rebuilding of our infrastructure. While both sides agree our roads, bridges and airports are badly in need of upgrade, the cost of one to two trillion dollars (or more) will only increase our debt.
Trump has also promised to rebuild the military and restore the massive 10% cuts put in place by the Obama administration. There’s a cost for that as well.
Then there’s tax reform. Most of us are excited about the prospects of sending Uncle Sam a smaller part of our paychecks.
And corporations stand to see one of the largest corporate tax cuts in history, with rates dropping as low as 15%.
Republicans say that these cuts will foster growth, more jobs and that supply-side economics will kick in to actually increase tax revenues and pay for everything…
But there are two problems with that argument.
First, even if it does happen, it will take at least a couple years for those effects to be seen.
And second, most of Trump’s plans would work in a supply-side economy like Reagan had. But the reality is that we’re in a steadily declining demand-side economy, spurred on by the retirement of the baby boomers. Basically that means that we don’t need more stuff (supply-side) because no one needs it (demand is slowing).
That why Trump’s policies may simply be too late to stop a pre-ordained recession.
As a student of cycles, Dent knows that economies run in boom and bust cycles… and this seven-year bull market is already long in the tooth.
Housing prices are again on the rise around the world. Add in rising rates and the next housing bubble will one of many factors to kick off the next recession.
In his latest video presentation Dent further details the “perfect storm” he sees on the horizon. And just like every other first-term President, Trump will be powerless to stop it.
“Housing prices will start to fall as much as 40% over several years… unemployment will surge… many state and municipal governments will be forced into default… and the federal deficit will balloon to as high as $1.5 to $2 trillion,” warns Dent.
Dent believes that we’re not just on the verge of another recession, but what he calls “The Greater Depression.”
Investors banking on the new hope of President Trump have already bid stock markets up 6% since the election. That just means the inevitable fall will be that much farther.
Hopefully, investors have started taking steps to avoid the Trump Recession.
According to Dent, those who prepare and position themselves beforehand could have the opportunity to earn millions through specific “decline-related” investments.
In addition, smart investors will be able to position themselves to maximize profits from the next long-term “boom cycle” – a once in a lifetime opportunity!
To find out exactly how this all plays out over the course of Trump’s first term, watch this video for Harry’s full analysis, free of charge.
The chart above shows every recession since 1910 (in red). New Presidents after a two-term election are noted with a blue star while new Presidents after a single-term presidency are noted with a red star. Wilson and Eisenhower appear as both. Only Coolidge saw more than a year (sixteen months) from his second-term election and the onset of the subsequent recession at the end of WWI. In the last 100 years, the recession of 1979 is the only recession not to occur around an election date.