Joseph P. Kennedy, the ruthless patriarch of the Democratic political dynasty (and the first SEC chairman), once said: "It's not what you are, but what people think you are that is important."
Donald Trump's career rose on the strength of that aphorism, as he cultivated the image of a master practitioner of "The Art of the Deal." But let's examine an excerpt from that 1987 book:
"You can't con people, at least not for long. You can create excitement, you can do wonderful promotion and get all kinds of press, and you can throw in a little hyperbole. But if you don't deliver the goods, people will eventually catch on."
As the markets continue their downward slide in recent weeks, it seems that perhaps Wall Street is catching on to Trump. The spectacular demise of "Trumpcare" last Friday certainly tarnished Trump's image as a negotiator.
Below, we look at five hedges to defend your wealth against the unfolding fallout of the Trumpcare debacle.
In addition to growing investor concerns that Trump can't deliver the goods, another danger for this overvalued stock market is higher interest rates, which are typically the kiss of death for a bull market.
There's an old Wall Street adage: "Three hikes and a stumble," whereby the third interest increase by the Federal Reserve in a single cycle usually leads to a decline in stocks. Sure enough, the Fed raised interest rates in December 2015, December 2016, and March 2017... and stocks are starting to tumble.