#mutualfunds

Now media has an issue with Trump’s $3,100 stake in Sanofi

The story just keeps getting more deranged. Now The NY Times is taking umbrage at the fact that Trump’s family has a $110k stake in a Dodge & Cox global mutual fund that just happens to have Sanofi, the maker of Plaquenil (hydroxychloroquine sulfate), as its largest holding. A whopping 2.9%! Which means his family stake would be c.$3,100.

One imagines if that same fund owned stakes in GM or Boeing that he should be accused of skimming off the top because he is ferried in The Beast and flown around in Air Force One. FedEx is in there too. Better keep an eye on Melania and Ivanka’s outgoing courier mail to ensure that UPS is also getting a fair share.

For the benefit of The NY Times, it might help to know that Trump has no legal control over the asset allocation choices made by a global mutual fund other than choosing to buy or sell it. Furthermore, Sanofi has been a dud stock over the last 5 years in terms of performance.

It would be better had the NYT taken pot-shots at Trump’s dreadful choice in asset manager given Sanofi has been such a dog.

Perhaps it would be nicer to think that the drug actually works. Certainly seems more promising than anything else out there to date.

Sad to think that The NY Times would seemingly prefer the drug fails and people die than Trump get a windfall profit in his 401k.

The stock market isn’t America – Mauldin Economics

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An interesting article on who owns stocks in America from Mauldin Economics – worth reading. Here is an excerpt:

A big slice of the US stock market isn’t American at all. Foreigners own about 35% of US stocks by value—and their ownership grew considerably over the last few decades…About half of US households have zero exposure to the stock market: no stocks, no mutual funds, no 401(k), no IRA, nothing…According to research by New York University economist Edward Wolff, some 84% of the stocks owned by Americans belong to the wealthiest 10% of households…Subtract that 10%, and subtract the 50% who own no stocks, the remaining 40% of Americans split about 15% of the stock market. For many, their investment is negligible—maybe a few hundred dollars in an old 401(k). Others have a big part of their net worth tied up in stocks. Maybe you’re in that group…But a solid majority of the American population feels no direct impact from stock market performance.”

Speaking of which, it was 35 years ago that Trading Places came out. Time to watch it again for old time’s sake.