Capital Brief: Hillary's Hopes & Trump's Tribulations

Takeaway: Republicans On The Rise; Fundraising Frenzy; Hillary's Hope For Change

Editor's Note: Below is a brief excerpt from Hedgeye Potomac Chief Political Strategist JT Taylor's Capital Brief sent to institutional clients each morning. For more information on how you can access our institutional research please email sales@hedgeye.com.

 

Capital Brief: Hillary's Hopes & Trump's Tribulations - JT   Potomac under 1 mb

 

“History and experience tell us that moral progress comes not in comfortable and complacent times, but out of trial and confusion.”

-Gerald R. Ford

HILLARY’S HOPE FOR CHANGE

With Hillary Clinton’s growing lead and clearer path forward, the Clinton camp is beginning to refine policy plans - and Republicans are already expressing aversion to them. Though rumors are swirling that Clinton, Speaker Paul Ryan and wannabe Senate Majority Leader Chuck Schumer are open-minded to a package to build on infrastructure spending and reform corporate taxes, nothing is set in stone. Some Republicans say they could go along with it, while others keep their distance. But remember - even if Clinton wins the White House, and the Senate turns Democrat, the House is likely to stay in Republican hands, and is likely to become more conservative.

REPUBLICANS ON THE RISE

Trump has watched his poll standings in battleground states plummet in the past few weeks, but he can point to at least one glimmer of hope for a possible turnaround – Republicans are gaining ground in voter registration in FL, PA, NC, and IA. Sure, Clinton is ahead by an average of six points nationally, and Trump is losing ground with millennials, women, and minorities, but registration increases in eastern and midwestern battleground states are welcome news for Trump, who is coming off his first controversy-free week since the convention. The RNC has done a lot of the legwork on voter registration, and they’re stepping in to fill other voids within the Trump orbit as he’s almost completely ignored a ground operation instead relying on earned media and, of course, his rowdy rallies to win over supporters.

FUNDRAISING FRENZY

Last month, Trump looked to be even with Clinton’s fundraising efforts (mostly), but August isn’t shaping up to be as positive. To make matters worse, of the cash that was raised, he’s barely spent any of it, forcing the RNC to step up and step in (see above). The lack of staff, dearth of advertising, and frugal spending is worrisome for the RNC and can only get better. To add to that, Clinton is a campaigning machine – she’s recently reserved over $80 million in advertising for the fall season, while Trump has fallen short on future ad buys. Trump and his camp should be deeply concerned about the inequity and needs to prioritize outreach to pro-Trump groups, because without additional resources, Trump’s chances in November will not improve.


Premium insight

McCullough [Uncensored]: When People Say ‘Everyone is Bullish, That’s Bulls@#t’

“You wonder why the performance of the hedge fund indices is so horrendous,” says Hedgeye CEO Keith McCullough, “they’re all doing the same thing, after the market moves. You shouldn’t be paid for that.”

read more

SECTOR SPOTLIGHT Replay | Healthcare Analyst Tom Tobin Today at 2:30PM ET

Tune in to this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

read more

Ouchy!! Wall Street Consensus Hit By Epic Short Squeeze

In the latest example of what not to do with your portfolio, we have Wall Street consensus positioning...

read more

Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

read more

McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

read more

Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

read more

Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

read more

Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

read more

6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

read more

Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

read more

Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

read more

A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

read more