Home Economy Trump’s 2024 presidential bid a fresh wrinkle for markets

Trump’s 2024 presidential bid a fresh wrinkle for markets

by admin
0 comment

NEW YORK (Reuters) – Former President Donald Trump’s 2024 presidential run on Thursday confirmed the world’s ‘best kept secret’, prompting some investors to leave It created another variable in the market that says it remains a low priority.

Trump, who has mounted a relentless attack on the integrity of the US vote since his 2020 election loss, has announced a bid for a property in Mar-a-Lago, Florida.

His triumphantly televised announcement comes after a disappointing outcome in last week’s midterm congressional election, in which many Republicans condemned him, and his party’s approach to a majority in the 435-seat House of Representatives.

“I don’t think the announcement makes as much sense as people thought,” said Joshua Crabbe, head of Asia-Pacific equities at investment manager Robeco. lowered,” he said.

“Only if he gets good traction in the nominations will the impact take off.”

Macroeconomic concerns and Federal Reserve policy have been the main market drivers this year, with politics taking a back seat on Wall Street.

Meanwhile, Trump’s announcement came as little surprise to investors.

“This has got to be the worst-kept secret on the planet,” said Bill Stone, chief investment officer at Glenview Trust Company. It may change with

Of course, it is difficult to predict what investment climate the country’s next president will face.

Perhaps it bears little resemblance to the current situation and the background that dominated the Trump term from 2017 to 2021 and was famous for relatively low inflation and a far less hawkish Fed. may not.

Anthony Scaramucci, former White House communications director under Trump and founder of SkyBridge Capital, said, “He’s the holy trinity of market lubrication, stimulating with fiscal deficits, low interest rates and easy funding.” It’s due to lack of procurement and regulation.” A meeting in Singapore.

“But on the flip side,[investors]also know he’s creating something the market absolutely hates: political instability.”

we were hurt

Dissension within the Republican Party has also made some investors uneasy, unlike during Mr. Trump’s last bid.

Shane Oliver, head of investment strategy at AMP in Sydney, said: “If anything, his decision to run could underscore the division that is taking place among Republicans, with many blames him for the poor results of the midterm elections. Investors may actually see it as a negative for the market.

Between Trump’s unexpected victory in the 2016 election and his defeat in November 2020, volatility, such as the trade war with China and the severe but brief economic slowdown associated with the COVID-19 pandemic. Despite the flash point, the US stock market rose more than 50%. .

The Republican president frequently tweets about Wall Street’s performance and takes credit for its rise.

S&P 500 Despite Recent Rise (.SPX) It is down about 16% for the year as of Tuesday after the Federal Reserve made a series of jumbo-sized rate hikes in a bid to fight inflation.

Investors are also looking to Trump-related stocks as a gauge of the former president’s prospects.

Shares of Digital World Acquisition Corp. (DWAC.O)Blank Check Company, which is considering an IPO of Donald Trump’s social media venture, fell 8.8% on Tuesday. (Hung Oh)Hired to build a phone app for Trump’s 2020 re-election campaign.

Both stocks rallied earlier this month after reports that Trump was considering a third bid for the White House.

Reporting by David Randall, with additional reporting by Vidya Ranganathan and Tom Westbrook.Edited by Lincoln Feast

Our criteria: Thomson Reuters Trust Principles.

You may also like

Copyright ©️ All rights reserved. | Investors Radar