The market is still enjoying its post-Trump honeymoon period

BrianTycangco鄭彥渊
11-13

The market is still enjoying its post-Trump honeymoon period. Strong dollar. Strong equities. Strong crypto. Down everything else.

But soon, reality will dawn that Trump's policies are going to be quite inflationary. We have what appears to be:

1. A worsening trade war with China (tariffs have been shown to increase inflation for US consumers).

2. Tighter labor market (wage inflation).

3. Corporate and income tax cuts (more on personal income tax impact on inflation & spending).

4. Reduced government tax revenues as a result of 3 increases the need to borrow.

5. Pressure on the Fed to lower interest rates as a result of 4 could further reignite inflation.

6. Too strong a US dollar will make it quite expensive for foreign firms to set up manufacturing in the country & for US exporters to compete globally.

$SPDR Gold Shares(GLD)$ $iShares Silver Trust(SLV)$ $.SPX(.SPX)$ $iShares 20+ Year Treasury Bond ETF(TLT)$ DXY BTC

ImageImage

US Election Wrap-up: How Will Trump Affect Market?
In the early hours of the 6th, Republican presidential candidate Trump declared victory in the 2024 presidential election. ------------------- Which asset will benefit the most?
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

Leave a comment
1
2