Investing

Presidential Election Cycle Impacts Business Prosperity

by Edmund Burden 3

Back in early July 2015 Macy’s leadership denounced GOP presidential candidate Donald Trump for his remarks concerning illegal immigrants. Actions taken by the popular retailer were specific – sever its relationship with Trump immediately and completely. The response by many media outlets, political foes and others was as expected; applause for actions taken to penalize the billionaire real estate mogul.

Mr. Trump, however, didn’t take the tongue lashing quietly. In response Donald Trump slammed the department store and called for everyone to “boycott” the well-established, popular retailer. As of today December 11, 2015, this battle initiated by Macy’s has arguably cost its shareholders dearly as the company’s market capitalization has declined by nearly 50 percent (talking billions here).

The impact to Mr. Trump on the other hand was beneficial according to polls then and now, indicating he has never lost step as the front runner to earn the GOP presidential nomination. Other businesses speaking out against “The Donald” who appear to have experienced similar fates include Univision and Televisa.

Given the aforementioned it’s not surprising to read an article in Bloomberg Business that nation’s CEOs are terrified to speak out against Donald Trump for fear – and I’m reading between the lines a little here – that his wrath might equate to shrinking cash flows and profit margins.

So what’s the lesson learned? It seems the rule book for running for political office is being rewritten by Donald Trump. Knowing one’s strengths and how and when to utilize leverage to inflict as much pain as possible on your attackers is key to winning any battle-war. Sun Tzu, read about him.

Disclaimer: I’m a registered independent; this article is not an endorsement for any presidential candidate.

Author

Edmund Burden

I help business owners grow their businesses through effective use of financial technology tools. Personal finance is a passion of mine so I try to stay on top of all the trends and write about where I see the market going.

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