In an exclusive interview with investment platform Saxo, the former White House communications director says:
- We hold copper and gold, and I have a lot of cash and a lot of Bitcoin
- The S&P is too reliant on the Magnificent 7 and breaking them up could lead to more innovation
- The Fortune 500 CEOs are with Harris
- There will get three 0.25 rate cuts by the end of the year unless anything catastrophic happens
As part of Saxo’s US Election Hub, and ahead of the President debate, Saxo interviewed Donald Trump’s former Director of Communications and SkyBridge Capital founder, Anthony Scaramucci.
Saxo asked Scaramucci about his current investments and thoughts on the Magnificant 7. He also spoke about politics, business, interest rates, crypto and more. The full transcript of the interview can be found here.
Is it still good to keep holding cash as investors, or are there other commodities attractive all the time the US economy is potentially volatile?
I own a lot of cash and a lot of bitcoin. I still have a stable of technology stocks I long term believe in. They're down a little right now but I think the markets are up 16-17 percent so far this year, which was a very good run. If you get three rate cuts, I think it'll bully the market. It'll provide a floor evaluation for the market.
In terms of the other assets, commodities such as gold or other metals, which would you say are the ones to go to and what are you staying clear of?
We have in our portfolio copper, and we have gold. You need copper for the electrical properties associated with it, the conductivity, you need it for the plumbing in the home improvement and housing. I think gold has outperformed the S&P 500 over the last two years.
Is the S&P too reliant on the Big Seven?
No question. What should be done and what could be done? They could be challenged from an anti-trust perspective. And they can be broken Into a multitude of different companies, and that would, frankly, unleash more innovation. That's something that could be done. Will that be done? Just too strong of a lobbying effort to prevent it but there are people in Washington who think that they should be broken up.
The great irony of all this, when they broke up the AT&T Bell System in 1984, it unleashed all of the great technology that led to the Internet, to the explosion of Web One, social media and all the other things. So we had to do that. I think it's a mistake not to allow for this in innovation, but those companies eventually will have to get broken up.
It’s not gonna happen, anytime soon, I'm just talking about what's right or wrong,
You've been talking to JP Morgan, Merrill Lynch etc - big business has so much power in the States, doesn't it? You clearly operate in that area, what's the inside scoop on what business thinks of Kamala?
I think the big CEOs are with her. What I mean by that is the Fortune 500. Jeff Sonnenfeld - the dean of the Yale School of Management - says that there are no Fortune 500 company CEOs supporting Donald Trump.
Musk is supporting Donald Trump. Elon Musk is of the opinion that under Donald Trump it will be more decentralized and less controlled. That's good for him in his businesses, so he's for Trump. I think it’s incorrect and this is a 2016 analysis.
I was once for Trump, I got to see up close and personal what he's like. My conclusion was that he can't be President again. He may be who the hell knows? But I'm telling you, there's a reason why 40 of us have gotten together and said, ‘’Hey, this guy shouldn't be president.’’
If I worked at a pharmaceutical company, and I had 40 people that were distinguished, experienced people in their 50s and 60s that worked at that company who weren't monetarily incentivized, and were telling you the truth and said, ‘’Hey, this pill, I watched it getting made. If you take the pill or you give it to one of your kids, it's gonna kill them and you,’’ would you take the pill?
But yet in American politics, you have 40 people saying that to people and you have 73 million people that still support Donald Trump.
The Fed Bank is meeting just after the debate, how do you see them changing the rates?
I think they're only gonna cut .25 right now. I think you will get three .25 rate cuts by the end of the year unless anything catastrophic happens.
People think they are behind the curve and should cut more, that it should be 125 basis points by the end of the year just to get back to even, but they will only cut by .75
I think the dollar will strike once they cut rates because Once you cut rates, remember, it's a match selling race. So the other banks will start cutting rates. Which will strengthen the dollar because it's a relative game.
