"Sell Everything Now" David Stockman Warns, America Faces "Total Disaster...Partisan Warfare"

Tyler Durden's picture

"Under a Trump victory, all bets are off," warns former Director of the Office of Management and Budget under President Ronald Reagan, David Stockman. "I like [Trump] because he's against the establishment, but he has no economic program. Yes, he's a disruptor, but has nothing to disrupt with," Stockman told CNBC, "if elected, it will be partisan warfare and a total disaster."

Stockman's message is clear, as CNBC notes, sell everything...

"The markets are hideously inflated... If you don't sell before the election, certainly do it afterwards. Government is going to be totally paralyzed regardless of who wins... There could be a 25 percent draw down on markets."

As CNBC details, Stockman posits that, under a Clinton administration, official investigations and new hacked email disclosures from Wikileaks will be non-stop. Furthermore, he reasoned that the "house will become a killing field" for anything Clinton is trying to do. Ultimately, Stockman said the Democrat would enter the Oval Office bruised, bloody and all but lacking in legitimacy.

"For six months, or even longer, there will acrimony, there will be brinkmanship, there will be paralysis. There will be a swarm of house committees doing investigations from all of these wiki leaks!" Stockman said of Clinton's hypothetical early days in the White House.


"Therefore, there will be no baton handed off from the Fed to fiscal policy as we slide into recession," he added.


Stockman, who spent twenty years on Wall Street with Salomon Brothers and Blackstone and served as a Congressman for Michigan, said the IRS is the government agency that is the clearest indicator that a storm is brewing over financial markets.


"The IRS said that last year revenue was up 1 percent and, in the last quarter, it was down 4 percent," explained Stockman. "And, in the five months since May, payroll withholding was barely keeping even with wage inflations. That means the work hours aren't happening."


From here, Stockman reasoned that with a paralyzed congress, a soon-to-expire debt ceiling, a powerless central bank and a market that's been flat for 700 days, that the pieces are in place for a crisis.


"We're in the same place today as we were in December of 2014," explained Stockman. 



"There's massive risk. So what's the possible reward?"

Stockman likened the future of Wall Street, after the election, to San Francisco after the 1906 earthquake, one of the most devastating ever. For this reason, Stockman has washed his hands of everything in his portfolio except cash and gold.

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Arnold's picture

We'll certainly remember you told us so, David.

VD's picture

stockman hysterically emailing all his subscribers before AMZN's penultimate earnings report, screaming to short this stawk as "opportunity once in lifetime" reeked of a desperado boiler room pitch -- if he placed that trade personally he got hosed bad; if anyone of his email subscribers did, then they are idiots bc stockman by law should not be dispensing advice like that via emails that if clicked lead to poorly disclaimered newsletters, etc.


and i actually appreciate and agree with stockman on his broad analysis and macro ideas -- but he is NOT a trader, nor should he play one on shows, newsletters and emails.

Raymond K Hessel's picture

I read this as a BUY signal

MalteseFalcon's picture

"Yes, [Trump]'s a disruptor, but has nothing to disrupt with,"

Prosecution, litigton, termination, primarying.

Trump can disrupt all day long.

And if they won't let him build, that's what he should do.

marathonman's picture

I enjoyed his contra corner site until they started charging to read anything. Sorry Mr. Stockman but the content wasn't that fresh. Zerohedge is still here so I'm somewhat in the know....

tarsubil's picture

In this world gone mad, we don't spank the monkey... ahem, I mean, you can be wrong even or especially when you are right.

Dangerclose's picture

You can add Jim Rikkards to that list. I'm still down nearly 50% on his Saudi Riyal devaluation/depeg imminent prediction from Jan. And these guys think that a $2400 yearly subscription to their newsletters is like buying a money printing press. DS no longer has a free newsletter.

hxc's picture

Used to read it daily. Feel betrayed

Escrava Isaura's picture

Even a broken clock is right twice a day.


unrulian's picture

some broken clocks seem to be wrong every time of the day.

grgy's picture

Predicting the future is a fool's game. Even for someone as smart as DS.

radio man's picture

I believe you're right, for I think it was the Chinese who said, "he that lives by the crystal ball eats broken glass".But when will all of this smoke lead those under anesthesia to the fire? 

Kirk2NCC1701's picture

David banks at UBS - United Bank of Stockman.

UBS vault is full of Cash and AU.  Accessible 24/7/365, no FAQs, no FICA, no Fees or withdrawal limits.

Gems and Precious Art are also great hedges, but... they are long-term Assets that retain value, and are not as liquid as PM.  They also need specialized channels for Buy-Sell transactions.  Great for some (very rich), not so great for most.

847328_3527's picture

I'm holding on to my RGR stawk. Sales are thru the roof.

Thank you Soweto and Hillary.

cossack55's picture

Cool. You hold the stocks and I will hold the products. Win/win?

fbazzrea's picture

doesn't have to be one or the other. both works for me.

roddcarlson's picture

David is smart when it comes to economics, but he is a gun controller which makes him not so smart. Too bad he can't understand how real resets occur with government periodically, at least the threat may keep them in line. I guess this happens when a person lives in the rude but civilized world of the east too long.

TeMpTeK's picture

Thats why it pays to be long nooses and body bags...#MAGA

BlindMonkey's picture

Dude.  Do you know where I can trade in those nifty plastic FEMA caskets?  I wanna be way long on those.  

fbazzrea's picture

anyone familiar with Clif High's observation of the 2% genetic deviation trigger for Mama Nature's expungement of the faulty code? you'll have to scroll down to find the blog, but it's at http://halfpasthuman.com/timetalks_storage.html

goes something like... between all the electromagnetic irradiations of every type to which we are exposed, chemical onslaughts of preservatives, GMOs, chemtrails, food additives, etc., and the male brain's deprivation of millions of sensory inputs due to circumcision, according to him, the human genome has surpassed the Universe's universal 2% genetic deviant threshold which has historically resulted in mass near-extinction to correct a pre-ordained evolutionary path.

just sayin'... may need lots of those body bags irregardless of WWIII or not. i dunno... so many opportunities, if you will, for mass reduction in population, whether biological, technological or environmental. odds are building as population grows.

have a great day! /:

MFL5591's picture

Another part of the etablishment

MFL5591's picture

Stockman said nothing when a man who never held a job was elected for two terms.  Now, we have a Billionaire and a govenor of a very well run state and he is telling us that Trump winning means sell everything? FU Stockman

Debt-Is-Not-Money's picture

Stockman is CFR.

I used to read his free newsletter but he recently went to paid subscription so I don't read him anymore (there was no actionable info).

MFL5591's picture

Another part of the etablishment

Caledonian's picture

I agree with his end game just not the logic that got him there.

DiagonalTension's picture

And what if it doesn't? Lots of jackass election predictions flying around right now.

aardvarkk's picture

Lots of jackass election predictions have been clogging all lines of communication for over a year now.

Chuckster's picture

It has been awhile since Davy Boy has been right.  A 25% correction would be a nothing considering how high the market is.  When Julian comes out with Hillary has kuru things will really get interesting....to say the least.  Welcome to civil war II.

38BWD22's picture



AT LEAST 49% of Americans have no idea what kuru is.  So if Americans were to elect President Kuru, it would not surprise me in the least.

Pure Evil's picture

I think we have a chance of getting Madam President Kuru come Tuesday.

Arnold's picture

The other half of the population are practitioners?

I hadda look it up.

Parrotile's picture

Gerstmann-Straussler Sysndrome has a nicer ring to it.


Or be brutal and state up front that the old bat has Mad Cow Disease . . . . . .

Tremel Jackson's picture

Need confirmation from Gartman & Haitzus.

adanata's picture


Wait for it then BTF




                             D ... by that time there will be some actual value

AlexCharting's picture

I only got 3% of my account invested at the moment... 90% bearish option plays... will get back inn after the election.  

WmTell's picture

What you want to buy before the election, or on  election day, is a gun, if you do not already have one...and lots of ammo to go with it.  By the grace of God you will never have to us the gun.  The ammo will double in price a month after the election (if Hillary wins) and if times get tough it can be traded for food.



AlexCharting's picture

I actually live in Norway, and its VERY difficult to get a gun here and legally carry it. Anyway, my US brethren should certainly be locked and loaded, since the election aftermath could become dramatic! 

The Count's picture

One  type of gun that the average citizen can buy in just about any country is the shotgun. Do not underestimate the power of this weapon. Great for home defense or duck hunting. With buckshot and/or slugs this is a serious device.

The Count's picture

I figure a 9mm round could go for $5 each and a .223 for $10. 308....$20.


Seasmoke's picture

Already done. Own nothing. Control everything. 

apberusdisvet's picture

Well at least he likes gold and green toilet paper

MsCreant's picture

Why anyone is "in" now is puzzling to me.

cossack55's picture

Orwellian doublespeak......in is really out. Just think backwards or maybe upside down....or maybe only think while gazing in a mirror.  Shit, now I'm puzzled.

Not Goldman Sachs's picture

401k zombies that see no other way. The penalties for golding out are extensive. Besides, Janet has their back.

crazybob369's picture

Me too. Upside maybe 10%, downside 40-90%. Get better odds in Vegas.

Boris Badenov's picture

Help the IRS clawback the deductions that donors to the Clinton Foundation took off their taxes.

ebworthen's picture

Don't gamble in the Wall Street casino at all.

Cash and Gold solid advice; your "returns" are only paper in the "markets".


Royal Bank of Scotland........SELL EVERYTHING

Dr. David Stockman.............SELL EVERYTHING