To be fair, the coming Trump victory might not be priced in yet. Also, Brexit could bring some turbulences.
To be fair, the coming Trump victory might not be priced in yet. Also, Brexit could bring some turbulences.
It's hard for me to predict in this case, but if Bernie were to win, I kind of expect a temporary downturn as people panic due to Bernie's promise of attacking "wall street".
https://en.wikipedia.org/wiki/U.S._Securities_and_Exchange_C...
On the other hand, suppose we had a 100pct trustworthy marketplace (unlike now). Wouldn't that spur investment and boost the markets? The only thing we get with the current system is rich wall street execs.
I don't think an unfunded plan to cut corporation tax is really going to tip things in his favour.
I consider this clear proof that he thinks his voters are chumps.
Personally I don't believe he would actually try to implement any of the stuff he says he has planned. He would probably just try to make it seem like he's making big changes while not doing much at all.
One example is his plan to get Mexico to pay for his wall, which involves holding hostage the wire payments that flow from people in the U.S. to their relatives in Mexico.
Financial institutions make money on those payments, but from a broader perspective the concept of holding capital flows hostage to policy ideas is deeply scary to Wall Street.
What if Trump decides that capital from Middle East sovereign funds will be hindered until they pay a greater share of the cost of fighting ISIS? What if he decides to hinder capital flows from China until they let their currency's value rise more? Etc.