Trump-supporting investment expert warns against putting money in former president's social media platform

Louis Navellier, a Trump-supporting chief investment officer, wrote an article for Market Watch on Monday in which he warned against putting money into former President Donald Trump's new social media venture.

At the start of the article, Navellier outlined why he still supported Trump over President Joe Biden while citing factors such as inflation and economic performance.

However, Navellier was still wary of the announced plan for Truth Social, which would be the former president's answer to Twitter and Facebook, two major social media platforms that have banned him.

"Enthusiasm is no substitute for fundamentals, and both companies, Trump Media & Technology Group and Phunware, are short on them," he argued.

In the first place, he said that no merger between the two firms have been finalized, only announced. Additionally, he argued that it would not be rational to invest heavily in a company that has not shown any ability, or even potential, to earn a hefty profit.

He also predicted that hedge funds would aggressively short the stock the more early investors pumped into it.

"Hedge funds are gonna hedge," he argued. "The hedge funds behind Digital World Acquisition Corp., namely D.E. Shaw, Saba Capital Management, Highbridge Capital Management and Palm Beach, Fla.–based Lighthouse Investment Partners will not be able to help themselves, and I guarantee you that they will be selling stock as soon as the restrictions on their Digital World Acquisition Corp. shares are lifted."

Read the whole column here.