Larry Hatheway, co-founder of Jackson Hole Economics, discusses the significant impact of political risks on investing. He argues that markets are underestimating the potential dangers of a second Trump presidency. The conversation also explores the complexities of trade deficits, the psychological biases affecting decision-making during geopolitical events, and potential investment strategies amidst market volatility. Hatheway highlights the implications of U.S. foreign trade policies and the relationship between budget deficits and economic confidence.