Gavekal Research co-founder Charles Gave has said he has ‘never felt so optimistic’ following the election of Donald Trump as president.
Gave predicted the ‘bull market of a lifetime' as Trump’s victory signalled a major change in direction in the way things are run politically and economically around the world.
In a note published this morning ‘President Trump and the Fall of Davos man’ Gave explained how ‘international bureaucrats and a clique of economists’ among other forces he dubbed ‘the men of Davos’ (referring to the Swiss town where members of the The World Economic Forum meet) have over time eroded the power of the sovereign state.
He said: '“We the people” are in the process of taking back their sovereignties, and are serving notice to the technocrats that they are fired. First Brexit, now Trump, next Italy, probably to be followed in due course by the Netherlands and France,’ he said.
‘The problem is that the recovery of these sovereignties will necessarily lead to the destruction of the false sovereign structures, let’s call them the usurper sovereignties, put in place by the Davos men in their attempts to create a new world order.’
Gave said if he were a portfolio manager, managing a Europe-only portfolio, he would ‘hold a lot of cash, mostly in British pounds and the rest in Swedish krona, no euro-area bonds at all, and all my equity positions’.
He said he would keep in the shares of companies operating in free market sectors- those not interwoven with government.
‘To me personally, the news is getting better and better as the men of Davos suffer setback after setback,' he said.
'Already, the second Berlin wall, hastily raised by those who never accepted the logical conclusions of the fall of the first—including that technocracy does not work—is crumbling. With one more effort, we will be back in a world with market-determined prices. And then we will enjoy the bull market of a lifetime. I have never felt so optimistic.'