Editor's Note: Below is a brief excerpt from today's Early Look written by Hedgeye Senior Macro analyst Darius Dale. Click here to learn more about the Early Look.
Source: Gage Skidmore
Congressional Republicans facing reelection in next year’s midterms now likely have an especially tough decision to make:
a) Remain aboard a sinking ship, considering the fact that President Trump has the lowest approval ratings of any U.S. president in recorded history; or
b) Face the “fire and fury” of Trump’s Twitter account by distancing themselves from the president and his agenda.
From so-called “failing #fakenews organization” Time Magazine on 8/14:
"President Trump's approval rating sank to 34% over the weekend, the lowest it's been since he took office… Since Gallup began presidential approval polls in 1945, six presidents have seen as low or lower approval ratings than Trump during their overall time in office: Harry Truman, Lyndon Johnson, Richard Nixon, Jimmy Carter, George H. W. Bush and George W. Bush… However, Trump's first six months in office have been marked by some of the lowest early approval ratings of any President in modern history. In the graph below, you can compare Trump’s approval ratings over his first 206 days with those of presidents dating back to Truman, when Gallup began the presidential approval poll."
The most difficult factor for investors to consider is the near certainty associated with the fact that our president is unlikely to humble himself in order to advance his decidedly aggressive pro-growth economic agenda. This is a character flaw that would prove disastrous to financial markets – if it were not for the ongoing recovery in both economic growth and corporate profits.