Reagan is a precedent for Trump as Krugman says. We can envisage what Trump’s early years will be like thanks to Reagan. And we could see a similar situation to what was known in the Reagan years as the twin deficits due to the size of the fiscal and external deficits.
In general, the economic policies announced by Mr. Trump champion “strong capitalism”, where success is awarded and the reverse, which should be a good thing. But Ahorro Corporacion does not agree that the protectionist measures announced, which in their view imply increased regulation, limit competition and so the efficient assignation of resources, are positive. Analysts have tried to quantify the possible outcome for Spanish companies.
Since Donald Trump’s victory in the US elections, the markets have seen declines in fixed income securities – bonds have lost 1.5 billion dollars – and rises in equities – with the value of global equities rising by 1.7 billion dollars. The emerging markets have retreated, while there has been an improved performance from cyclical sectors, particularly the financial sector. So we need to ask what will be the best bets for investors once Trump’s presidency begins.
Donald Trump is clearly interfering with corporate liberty, directly criticising on Twitter every investment the big companies make. But the question is that he functions by and for the cameras and hasn’t taken in what the rule of law is. So you can’t ask him to have respect for regulations and institutions. He will be sworn in today.
A review on fixed income market cannot omit president-elect Trump’s first press conference of the year, although it contained little substance for investors trying to understand what the economic priorities of the new Administration will be.
In the aftermath of Mr Trump’s victory, stock markets surged, building on promises of strong stimuli and sizeable tax breaks. As time goes on, they are reappraising the short-term outlook, since fundamental changes may take more than one year to materialise. No wonder investors are turning cautious, cashing in on early gains.
I hate this endless temptation for bracketing time into what we call “years.” Time is time and, by definition, there are no interruptions. The problems which beset us in 2016 are still here, whether it’s terrorism or open warfare or Spain’s ingovernability. Thinking it’s going to be very different in 2017 is deceiving ourselves.
As far as the global economy is concerned, 2017 will be the year when new US President Donald Trump will make his mark. That said, how far his influence will reach is still uncertain as it is still too soon to know how many of his policies will be implemented.
Those old jobs in productive manufacturing companies which exported from the developed countries to half the world are never coming back. You can’t suddenly use protectionism to reverse such a huge change which has taken place throughout the world.
There is a statistic link between profits and investment, in the US, so a drop in the former determines a recession in the following quarter. But the Trump effect is likely to mean another imminent recession will have to wait.