David Shapiro, chief global equity strategist at Sasfin Securities, on what the smart money is doing
02 May 2025 - 05:00
byDavid Shapiro
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
President Donald Trump reminds me of an irresponsible and unruly teenager who strips his mother’s car engine without a clue on how to rebuild it. His economic policies are clearly flawed and misguided and investors have demonstrated their displeasure by selling off equities, bonds and the dollar.
He is grappling with how to extricate himself from this mounting crisis with any semblance of dignity. He is vindictive and sadistic, and if things go wrong he blames others. His scathing attack on Federal Reserve chair Jerome Powell for not cutting interest rates reflects a desperate frustration with the weak performance of financial markets and his plunging popularity.
These public criticisms not only increase market uncertainty but erode investor confidence. In his pursuit of personal interests, Trump risks undermining the very industries and institutions that have long defined American exceptionalism. This not only tarnishes the nation’s honour but also discourages visitors and partners from engaging with the US.
BUY: Powell
Jerome Powell embodies a stabilising influence that has guided the US and the global economy through previous financial crises. His careful, data-driven approach to monetary policy is in stark contrast to the erratic and harmful strategies of the Trump administration. Powell knows the Fed is in uncharted territory and is battling to gauge the consequences of Trump’s sweeping tariff increases on inflation and growth — a situation not seen in nine decades.
He warns that during these uncertain times, consumers and businesses may hesitate to invest, making the US a less appealing destination. Though Powell says the markets are orderly, he has no idea where and when they will land. However, the US is still wealthy and resilient and capable of weathering this storm. This crisis is not an external shock; it is self-inflicted and can be reversed.
The concern is the extent of the damage that may be done before rational forces such as Powell prompt the Trump administration to recognise its folly and correct its course. Early indicators suggest a growing awareness of this. Many Americans take pride in the achievements of their leading technology companies; witnessing their struggles in the stock market feels like an affront to the nation’s dignity.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
BROKERS’ NOTES: Dump Trump
David Shapiro, chief global equity strategist at Sasfin Securities, on what the smart money is doing
SELL: Trump
President Donald Trump reminds me of an irresponsible and unruly teenager who strips his mother’s car engine without a clue on how to rebuild it. His economic policies are clearly flawed and misguided and investors have demonstrated their displeasure by selling off equities, bonds and the dollar.
He is grappling with how to extricate himself from this mounting crisis with any semblance of dignity. He is vindictive and sadistic, and if things go wrong he blames others. His scathing attack on Federal Reserve chair Jerome Powell for not cutting interest rates reflects a desperate frustration with the weak performance of financial markets and his plunging popularity.
These public criticisms not only increase market uncertainty but erode investor confidence. In his pursuit of personal interests, Trump risks undermining the very industries and institutions that have long defined American exceptionalism. This not only tarnishes the nation’s honour but also discourages visitors and partners from engaging with the US.
BUY: Powell
Jerome Powell embodies a stabilising influence that has guided the US and the global economy through previous financial crises. His careful, data-driven approach to monetary policy is in stark contrast to the erratic and harmful strategies of the Trump administration. Powell knows the Fed is in uncharted territory and is battling to gauge the consequences of Trump’s sweeping tariff increases on inflation and growth — a situation not seen in nine decades.
He warns that during these uncertain times, consumers and businesses may hesitate to invest, making the US a less appealing destination. Though Powell says the markets are orderly, he has no idea where and when they will land. However, the US is still wealthy and resilient and capable of weathering this storm. This crisis is not an external shock; it is self-inflicted and can be reversed.
The concern is the extent of the damage that may be done before rational forces such as Powell prompt the Trump administration to recognise its folly and correct its course. Early indicators suggest a growing awareness of this. Many Americans take pride in the achievements of their leading technology companies; witnessing their struggles in the stock market feels like an affront to the nation’s dignity.
Also read:
BROKERS’ NOTES: Buy Pepkor, sell Thungela
BROKERS’ NOTES: Buy Sun International, sell the dollar
BROKERS’ NOTES: Buy Europe, sell rands
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Most Read
Published by Arena Holdings and distributed with the Financial Mail on the last Thursday of every month except December and January.