Mark Cuban Places “Risky” Bet Against Donald Trump
Wilbur Ross warns Dallas Mavericks owner Mark Cuban could very well “lose his shirt” if he bets against Donald Trump becoming US President.
Mr. Cuban last week said he has his “Trump Hedge on,” predicting stock market chaos if GOP Presidential nominee Donald Trump wins the 8 November election.
“In the event Donald wins, I have no doubt in my mind the market tanks,” Mr. Cuban warned in an interview last Tuesday on TV.
“There are so many external global influences on our market,” Mr. Cuban said. “You know, what money comes here when there is uncertainty overseas, what money goes into Treasuries, where does money go if rates go higher or lower?”
Mr. Cuban proclaimed he was not taking chances in the November presidential election.
“I have my Trump hedge on,” asserting “if the polls look like there’s a decent chance Donald could win,” he’d “put a hedge on” that’s worth “over 100% of my equity positions and my bond position, as well, that protects me just in case he wins.”
Pressed on what was so “horrible about the prospect” of a President Trump, Mr. Cuban, who has endorsed Hillary Clinton, replied, “The uncertainty.”
“We don’t know what Donald Trump’s plans are,” he said. “All we know are a little bit about his immigration, which tends to change on a day-to-day basis, and we know he will reduce taxes significantly.”
Asked about his reaction to Cuban’s strategy, iconic investor Wilbur Ross said, “I think he’ll lose the shirt that he is wearing with that bet.” He warned that you should not underestimate Donald Trump.
“He’s gonna be giving a very big speech next week here in New York City. It’s a very important event because he will lay out in pretty good detail his economic plan. I think that will be a transformative moment,” Mr. Ross said.
Wilbur Ross is a investor and businessman who made his billions advising bankruptcies and restructuring flailing companies, Ross was # 20 in Newsmax’s 100 Most Influential Business Leaders in America.
Mr. Ross is a force in the steel, coal, telecommunications, foreign investments, and textiles industries. He spent 25 years with Rothschild Inc.’s bankruptcy practice and then founded investment firm WL Ross in Y 2000. It was acquired by Invesco in Y 2006. He has spent the recent years turning around troubled banks, first the Bank of Ireland and then the Bank of Cyprus.
Mr. Ross successfully bet on the Irish banking system when it was on the ropes. He is known for restructuring failed companies in industries such as steel, coal, telecommunications, foreign investment and textiles.
As of June 2015, Forbes listed Mr. Ross’ net worth at $3-B.
Have a terrific week.
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