Serious Trump is good for economy

[dancingshoes]

Donald Trump's surprise ascent to the U.S. Presidency will no doubt have a dramatic impact on global markets for years to come, but the biggest initial effect is the so-called "reflation" trade.

Trump didn't take long to express his plan to increase economic growth; at the very start of his acceptance speech, the new president-elect outlined a plan to expand fiscal stimulus: "We are going to fix our inner cities and rebuild our highways, bridges, tunnels, airports, schools, hospitals. We're going to rebuild our infrastructure, which will become, by the way, second to none. And we will put millions of our people to work as we rebuild it."

Many market participants have viewed fiscal stimulus as the "missing piece" to the economic puzzle, and the prospect of an injection of government spending into the economy has led to a dramatic reaction in markets.

In simple terms, Trump's economic plan should drive inflation higher, leading to an increase in the value of the US dollar, higher bond yields, and an extension of the current market rally. In terms of specific sectors, materials, construction, and defense stocks are all poised to benefit in the weeks to come.

 

[syed putra]

That was what obama said but congress and senate did not agree to more spending.

 

[dancingshoes]

i think he can use his authority as president to get things thru.

 

[Ash007]

I brought more stocks on election day as he was winning. You know what happened the next day.

 

[winnipegjets]

That was what obama said but congress and senate did not agree to more spending.

Mitch McConnel, the leading Republican senator publicly declared that the Republican were not going to cooperate with the President; he said that they were dead on on blocking the President's legislations.

There was NO respect for President Obama from Day 1.

 

[johnny333]

I brought more stocks on election day as he was winning. You know what happened the next day.

Yes market dropped :(

However many are predicting a rate rise because when Trump starts spending on his programs it will be inflationary & interest rates has to rise to counter this inflation.

 

[johnny333]

Mitch McConnel, the leading Republican senator publicly declared that the Republican were not going to cooperate with the President; he said that they were dead on on blocking the President's legislations.

There was NO respect for President Obama from Day 1.

Trump may have run as a Republican but he's not popular among Republicans. So even though the Republicans control the House & Senate I wonder if he will face opposition from his own party

 

[Ash007]

Yes market dropped :(

However many are predicting a rate rise because when Trump starts spending on his programs it will be inflationary & interest rates has to rise to counter this inflation.

Looking at VGB now.