Late Friday, the Trump administration released financial disclosure forms for key administration staffers, including Trump's top trade advisor Peter Navarro.
Navarro — whom Trump picked to “develop trade policies that shrink our trade deficit, expand our growth, and help stop the exodus of jobs from our shores”—said he owned, according to ThinkProgress, at least $15,001 in a fund called TBT UltraShort Lehman 20+.
The fund, now called the TBT ProShares UltraShort 20+ Year Treasury “seeks daily investment results, before fees and expenses, that correspond to two times the inverse (-2x) of the daily performance of the ICE U.S. Treasury 20+ Year Bond Index.”
In other words, the fund allows investors to bet on a decline in U.S. Treasury bonds.
I am personally negative on U.S Treasury bonds and have said so in the EPJ Daily Alert. But it is one thing for me to be short Treasury securities and quite another for Trump's trade adviser to be short. As Think Progress correctly notes:
[T]heoretically his holdings could create a financial incentive for Navarro recommend policies that are harmful to the stability of U.S. Treasury securities as part of Trump’s economic team, at the very least, it could indicate just how little faith he has in Trump’s ability to make “make America great again.”-RW