Anthony Scaramucci: Donald Trump’s second presidency would be the “holy trinity” for the stock market
A Trump presidency in 2024 could help battered stock markets, according to former White House communications director Anthony Scaramucci, but warned of his former boss’s tendency to shake political stability.
Former US President Donald Trump announced Tuesday night from his Florida home that he would launch a third campaign for the White House.
“I’m running because I believe the world hasn’t seen the true glory of what this nation can be,” he told an audience at his Mar a Lago club.
Anthony Scaramucci — the founder of Skybridge Capital, who served as Trump’s communications chief before being sacked after just 10 days — speaking to reporters at a conference in Singapore on Wednesday, predicted the former president’s fast and loose tendencies are helping could stimulate the financial markets.
“He is the holy trinity of market lubrication,” he said in a remark reported by Reuters. “Stimulus from deficit spending, low interest rates – easy money – and a lack of regulation.”
However, Scaramucci acknowledged that Trump also threatened to create volatility in markets that have been on shaky ground for a year.
“The downside is [investors] also know he’s creating what the markets absolutely hate: political instability,” he said. “If any of these other candidates can present themselves with some messages from Trump without the Trump drama, opportunities could arise.”
Throughout his presidency, Trump often took to Twitter to celebrate the strength of the US stock market. According to CNBC, within the first two years of his tenure, Trump had tweeted about the stock market at least 60 times, often citing its successes as his own.
“Doubtful” investors are optimistic about Trump 2.0
Markets have so far reacted mutedly to Trump’s much-anticipated announcement, with US stock futures falling slightly on Wednesday and European markets instead reacting to a missile that crossed the Ukrainian border and exploded in Polish territory.
In a note on Wednesday, Matt Simpson, a market analyst at Australia’s City Index, said the biggest question on investors’ minds at this point is whether Trump’s presidential bid would split the Republican Party and inadvertently give the Democrats “an easy win.” ”
Simpson noted that Trump is “probably just warming up for another turbulent two years (at least) of US politics,” but acknowledged that a lot could happen before the 2024 vote.
“If inflation is not under control, it will put the Dems in a very weak position by the election,” he said.
“However, it’s a long, arduous road to the White House, and Trump does not yet exercise presidential powers, so it could be some time before markets take notice – which is likely why they don’t have a meaningful reaction to an announcement today.” all of us showed fully expected.”
Meanwhile, Shane Oliver, head of investment strategy at AMP, told Reuters that while Trump’s presidency has been associated with strong stock market performance, there have also been two years of “rough returns” thanks to his trade war policies and the COVID-19 outbreak.
“Things have changed a lot since then, so it’s doubtful investors would conclude that a new Trump presidency would necessarily be good for stocks,” he said.
“If anything, his decision to run could increase divisions among Republicans, with many blaming him for their poor performance in the midterm elections, and those divisions could even decrease the chance of a more pro-market Republican administration winning the presidency in 2024,” so some investors might actually see it as negative for the markets.”
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