Markets Under A President Trump

by Eve K.
(North America)

Just what should investors and traders expect from markets under a President Trump administration? This is a question that is on the minds of most given the looming inauguration and incoming administration. Unfortunately, the honest answer is a little bit of everything, and possibly even a lot!

Some sectors of the economy are salivating at the possibility of a Trump administration. Banking and finance are two such sectors, where there is broad optimism at the thought of having a businessman and billionaire in the White House. Between having a corporate friendly party in power in both houses of Congress and a president-elect who has pledged deregulation, specifically promising to remove two old regulations for each new one, there is high anticipation that the coming years will be kind to banks and financial institutions.

The absence of momentum is now shown in the Dow and S&P which are trading in a smaller band throughout the past month. Their range also has concentrated drastically on an intraday as well.

Liberal media outlets are also already enjoying a resurgence as those opposed to the current dominant power mobilize to resist in any way possible. However, this is closely related to one aspect of a Trump presidency that can rattle the entire economy. Trump has become famous for his no holds barred use of Twitter, and when bold proclamations come from the President, it can send stocks of particular companies soaring or sinking. The constant air of apprehension and uncertainty certainly do not bode well for consumer confidence and general economic stability.

One sector bracing to get hit hard and in a rather negative fashion is the health care sector. While the Affordable Care Act was not particularly popular with many in the industry, if it is repealed without being replaced by anything comparable, millions could lose their health insurance, meaning the industry could lose nearly 20 million customers. That would be a drastic loss to such a huge sector.