A Reckless Weekend as Landslide Looms

by Greg Valliere, AGF Management Ltd.

DONALD TRUMP DESPERATELY WANTS to win re-election but his reckless behavior in dealing with Covid-19 continues unabated — and Republicans now face a Blue Wave that could sweep away not only the presidency but the GOP Senate as well.

CAN’T HELP HIMSELF: Trump put the health of Secret Service agents at risk yesterday by recklessly insisting on a ride outside of Walter Reed Hospital to greet supporters. This horrified the agents and doctors, and will require 14-day quarantines for everyone in his car.

THIS FOLLOWED A WEEKEND in which Trump’s personal physician refused to answer questions or was disingenuous at best, as the country’s leading doctors expressed strong disapproval of Trump’s treatment and medication, a combination usually reserved for critically ill patients.

TRUMP WANTS TO PORTRAY VIGOR — AND ELECTABILITY — so he apparently was furious with Chief of Staff Mark Meadows, who stated correctly that the president won’t be out of the woods for several days. Meadows is in the dog house; the White House dysfunction never ends.

WHETHER TRUMP RECKLESSLY DEMANDS TO LEAVE THE HOSPITAL today isn’t the point. The point is that 65% of voters believe Trump should have taken the virus more seriously; and only 34% believe he’s telling the truth about it, according to a Reuters poll taken before this weekend.

REPUBLICANS WE’VE TALKED WITH are increasingly resigned to Trump losing the election. This weekend’s post-debate poll by the Washington Post and ABC News, showing Joe Biden leading by 14 points, seems a little high; a 9 or 10 point lead seems more likely. If Biden wins by that much, the GOP almost certainly would lose the Senate.

TRUMP COULD GENERATE SYMPATHY AND RESPECT if he bounces back quickly; he has admirable stamina. But this election is now all about Covid-19, and the public believes he has done a terrible job of handling it.

TRUMP HAS PUT Secret Service agents at risk, he put his audiences around the country at risk, he put everyone at Amy Coney Barrett’s reception at risk — and now he is putting Mike Pence at risk. The vice president has been told to campaign, even though a Pence infection could risk a Nancy Pelosi presidency.

WHAT CAN TRUMP DO THIS WEEK, other than leave the hospital against the advice of doctors? He could Tweet and tape TV spots, he could insist that the Barrett hearings begin by mid-October, and he could offer Pelosi just about anything she wants in a stimulus bill that the markets would love. Is re-election worth $2.2 trillion? We may find out this week.


The views expressed in this blog are those of the author and do not necessarily represent the opinions of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies.

The views expressed in this blog are provided as a general source of information based on information available as of the date of publication and should not be considered as personal investment advice or an offer or solicitation to buy and/or sell securities. Speculation or stated believes about future events, such as market or economic conditions, company or security performance, or other projections represent the beliefs of the author and do not necessarily represent the view of AGF, its subsidiaries or any of its affiliated companies, funds or investment strategies. Every effort has been made to ensure accuracy in these commentaries at the time of publication; however, accuracy cannot be guaranteed. Market conditions may change and AGF accepts no responsibility for individual investment decisions arising from the use of or reliance on the information contained herein. Any financial projections are based on the opinions of the author and should not be considered as a forecast. The forward looking statements and opinions may be affected by changing economic circumstances and are subject to a number of uncertainties that may cause actual results to differ materially from those contemplated in the forward looking statements. The information contained in this commentary is designed to provide you with general information related to the political and economic environment in the United States. It is not intended to be comprehensive investment advice applicable to the circumstances of the individual.

AGF Investments is a group of wholly owned subsidiaries of AGF Management Limited, a Canadian reporting issuer. The subsidiaries included in AGF Investments are AGF Investments Inc. (AGFI), AGF Investments America Inc. (AGFA), AGF Asset Management (Asia) Limited (AGF AM Asia) and AGF International Advisors Company Limited (AGFIA). AGFA is a registered advisor in the U.S. AGFI is registered as a portfolio managers across Canadian securities commissions. AGFIA is regulated by the Central Bank of Ireland and registered with the Australian Securities & Investments Commission. AGF AM Asia is registered as a portfolio manager in Singapore. The subsidiaries that form AGF Investments manage a variety of mandates comprised of equity, fixed income and balanced assets.

About AGF Management Limited

Founded in 1957, AGF Management Limited (AGF) is an independent and globally diverse asset management firm. AGF brings a disciplined approach to delivering excellence in investment management through its fundamental, quantitative, alternative and high-net-worth businesses focused on providing an exceptional client experience. AGF’s suite of investment solutions extends globally to a wide range of clients, from financial advisors and individual investors to institutional investors including pension plans, corporate plans, sovereign wealth funds and endowments and foundations.

For further information, please visit AGF.com.

© 2020 AGF Management Limited. All rights reserved.

This post was first published at the AGF Perspectives Blog.

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