It was a disorienting week for investors while Donald Trump works to reshape the world economy, annihilating billions of dollars in the process.
Jamel Toppin for Forbes
The prices seem to be simple tools, but they often come with unexpected repercussions. Just ask the president, whose fortune has dropped half a billion dollars in a few days.
DOnald Trump fired the first shots from a world trade war last week, inflicting damage to all kinds of people, including himself. On April 2, the day Trump deployed his scanning prices plan, Forbes has set its net value at $ 4.7 billion. Less than a week later, it fell to around $ 4.2 billion because the value of its public shares and private assets falls in tandem with the wider market.
The biggest loss of Trump comes from his most precious asset, the Trump Media and Technology Group, which has decreased by 8% in the last three days of negotiation, reaching its lowest price since October. Its participation, worth 2.2 billion dollars on Wednesday, is now at $ 2 billion. The blow of about $ 170 million represents only the start of its problems.
Trump’s commercial real estate assets fell around $ 90 million, assuming they have experienced haircuts similar to listed commercial real estate companies. The actions of Vornado Realty Trust – the company that joins Trump in two of its most precious buildings, 1290 Avenue of the Americas in New York and 555 California Street in San Francisco – exceeded 14% from the announcement of Trump until the end of the end of the day. The share of another large real estate company in New York, SL Green, dropped by 15%. Trump’s portfolio, including Vornado’s properties, Trump Tower and 40 Wall Street, is now worth around $ 570 million, compared to $ 660 million last week.
Golf properties also lose value. Many balls, clubs and shirts in professional stores come from abroad. The real threat to Trump’s wallet, however, is the possibility of tightening the belt. Club members can reduce weddings, sumptuous restaurants or even subscriptions. “If you hit a recession, your wife looks at you and says” What do we (devil) do we do with this expensive club subscription? “” Explains an initiate of the industry.
There are no listed companies like Trump’s Golf Clubs collection, but the closest comparables indicate trouble. The shares of leisure companies at a price, such as Vail Resorts and Soho House, have been down more than 15% since Wednesday. Topgolf Callaway Brands, which manufactures clubs and manages golf rooms, is also down 15%. A drop similar to Trump golf courses would shave an additional $ 70 million on its net.
Hospitality assets are not better positioned. Trump’s largest is Trump National Doral, a seaside resort of 643 rooms in Miami, where Liv Golf linked to Saudi Arabia comes from a event, Trump appearing shortly after announcing his pricing plans. The White House spokesman Taylor Rogers said that the president remains focused on the country, not his business. “President Trump has implemented prices on the countries that have been tearing us away for years to make sure that the Americans are better off for future generations,” she said in a statement. “The workers’ assets are in trust managed by his children while he has overtime to lead the country to economic prosperity.” In addition to Dural, Trump continues to have hundreds of hotel units in towers in Chicago and Las Vegas. If the value of Trump’s assets fell, let’s say, 16%, it would have lost an additional $ 65 million. Its much smarter license and management activity may have lost an additional $ 15 million in addition to that.
Residential real estate has also decreased dramatically, with actions of four holders of listed apartments on average by 13%. Trump has dozens of units in buildings he developed years ago. Cutting this wallet, and its net value still falls $ 20 million. Its most protected assets could be its many trophies, such as the Penthouse at the top of Trump Tower and Mar-A-Lago. Dana Koch, a luxury agent in Palm Beach, says that these types of assets work in a different atmosphere of the stocks listed on the stock market. “It’s even more finished and rarer,” he says. Cult the trophies by, for example, 5%, or half of the larger market drop, and Trump is absent from an additional $ 32 million.
The species generally offers a respite in times like these. According to Trump’s latest financial disclosure report, he has a portfolio of diversified bonds and a handful of capital positions, including a participation of $ 5 to 25 million in the Blue Owl Capital private credit company, down 22% since Wednesday. After depositing this disclosure in August, Trump received two massive slowders via cryptocurrency companies. For the first time came World Liberty Financial, a project that promised a “financial revolution” and channeled nearly $ 400 million to the president and his family. Then the sales of The $ Trump Coin, which probably provided at least $ 175 million before taxes.
The question for the president is that he may have stored some of these products in cryptocurrencies, notoriously inconstant assets. The first son Eric Trump publicly praised Ether in February, telling his Twitter subscribers that it was “a good time to add $ ETH”. The currency has dropped by 45% since then, including a drop by 18% in the wake of Donald Trump’s pricing announcement. If the post-tax postal windfall of the president of $ 350 million dollars even halved as ether, it would cost an additional $ 32 million.
Add all of this, and Trump’s losses of private assets seem to prevail over those of its stocks listed on the stock market. The biggest threat to Trump is not direct prices on the products it is important, since its companies do not sell many harsh products. It is the loss of confidence of investors in the world. People are counting on whims, not on logic, when they decide to buy or abandon luxury real estate, expensive subscriptions and high -flying memes actions. The more Trump is uncertain in the world economy, the more its clear value will move away.
