Trump, Tariffs, and Tesla

Professor Damodaran discusses the intricate relationship between politics and investing in the context of globalization , job losses, and economic disruption. Noting the significant impact of globalization since the 1980s, particularly highlighting China’s dramatic growth and the resultant winners and losers, including blue-collar workers and small businesses affected by these shifts. The discussion touches on the political backlash against globalization, exemplified by events like Brexit and Trump’s election, and forecasts a future with heightened tensions in this area. Furthermore, the speaker evaluates the dynamics of disruption across sectors, emphasizing the necessity for careful consideration of company valuations in the face of political influences, particularly for Tesla amidst rising competition and changing consumer sentiments. Overall, the analysis calls for investors to adapt their strategies to navigate the political factors and anti-globalization sentiments.