Will Trump’s Economic Agenda Die A Slow Death?
At this stage Trump's economic agenda can be summarized in the following fashion.
More stimulus, tax cuts for corporations, renegotiating NAFTA (and others), lower dollar, more protectionism, more jobs, less regulation, infrastructure spending.
Yet, political infighting over the last few weeks suggests that President Trump might have a very difficult time accomplishing all of the above. If any at all. Consider the following....
Some investors are now lowering their expectations for business-friendly new policies that will goose the economy, and exiting the so-called Trump trade. The promise of tax cuts, friendlier regulation and stimulus spending on infrastructure sent stocks soaring after the election, and if those measures don’t materialize in 2017, markets may give back the gains.
Now, today's stock market expects all of President Trump promises to materialize, like, yesterday.
It is becoming increasingly unlikely. As the article above suggests, internal political infighting is likely to derail or delay some of Mr. Trump's plans. If not most.
I think the best scenario most investors should anticipate here is the passage of some measures, but with significant delays. Unfortunately, the stock market is not pricing any of this in - at least not yet.