According to former White House communications director Anthony Scaramucci, President Trump in 2024 could soften the blow to the stock market, but warned it would tend to undermine the political stability of his former boss.
Former U.S. President Donald Trump said Tuesday night from his Florida mansion, Launches third White House campaign.
“I am running for office because I believe the world has yet to see the true glory this country can become.”
Anthony Scaramucci, founder of SkyBridge Capital and former head of communications for President Trump, told reporters at a conference in Singapore on Wednesday. fired in just 10 days— predicted that the former president’s fast-talking, loose tendencies could boost financial markets.
“He’s the holy trinity of market lubricants,” he said, reported news agency Reuters..It’s deficit spending, low interest rates (easy money) and lack of regulation to stimulate the economy.”
But Scaramucci also acknowledged that Trump had threatened to create volatility in a market that has already suffered a year of volatility.
“The other side [investors] I also know he’s creating something the market absolutely hates: political instability,” he said. “If any of the other candidates can present some of Trump’s message without the Trump drama, we might have a chance.”
During his tenure, President Trump frequently Posted on Twitter to celebrate the strength of the US stock marketIn his two years in office, Trump has tweeted about the stock market at least 60 times, According to CNBCwhich frequently takes credit for its success.
‘Doubtful’ investors bullish on Trump 2.0
Market reaction to the widely anticipated Trump announcement has been muted so far. European Market Responding Instead A missile crossed the Ukrainian border and exploded on Polish territory.
Matt Simpson, a market analyst at Australian City Index, said in a note Wednesday that the biggest question on investors’ minds at this stage is whether Trump’s presidential campaign will divide the Republican Party and inadvertently lead to Democrats. “Whether it brings an easy victory or not,” he said.
Simpson said Trump “is likely gearing up for what could (at least) be another tumultuous two years for American politics,” but before the 2024 vote. He acknowledged that many things could happen in
“If inflation is not controlled, the Democrats will be in a very weak position leading up to the election,” he said.
“But it’s been a long, arduous road to the White House and Trump has yet to exercise presidential powers, so it could be a while before markets take notice. Fully expected.”
Meanwhile, Shane Oliver, AMP’s head of investment strategy, told Reuters that Trump’s presidency was associated with strong stock market performance, but his trade war policies and the outbreak of COVID-19 , said there was also a two-year “rough return”.
“Things have changed a lot since then, and I doubt investors will necessarily conclude that a new Trump presidency is good for stocks,” he said.
“If anything, his decision to run may underscore the divisions that are taking place among Republicans, with many blaming him for the poor results of the midterm elections and these divisions , some investors may actually be seen as a negative for the market, as a more market-friendly Republican administration could further reduce the chances of becoming president in 2024.”
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