Financial Expert: ‘Economy Would Take Off’ Under Trump

Donald Trump’s plans to cut taxes and invest in infrastructure projects if he becomes president could stimulate the nation’s financial health, according to one expert.

Bloomberg News reported that David Woo, who is in charge of global rates and currencies research for Bank of America Merrill Lynch, said market officials are beginning to “wake up” to the idea that Trump might win the election in November. The financial strategist predicted that if the Republican nominee is victorious, and the GOP maintains its majorities in the House and Senate, “the U.S. economy would take off in a big way.”

Trump’s tax and spending proposals would spark in increase in the issuance of Treasuries, which would improve the value of the U.S. dollar and spur U.S. Treasury yields, according to Woo. He told Bloomberg TV on Monday: “In the last four years, we have had two instances of massive unwinding of the risk parity-trades. At this point, the risk to the risk-parity trade is just as big.”

Woo previously expressed concern that a Trump victory could endanger the risk-parity strategy, which Bloomberg described as “a long levered position in Treasuries and a long position in stocks to better diversify risk levels across different asset classes.”

Woo suggested that Trump is gaining on Clinton in national and swing-state polls partly because of the recent poor performance of risk-parity trades. However, Bloomberg reported: “It’s difficult to see how the proximate cause for the bond selloff has its roots in the U.S. rather than overseas.”

Source: Newsmax
Photo: 123RF

Tell Us What You Think

More News Stories

In what seems the exact opposite of the plan by the German government to integrate the millions of refugees entering the country, a city in...

President Donald Trump’s decision to remove the United States from the non-binding Paris Climate Change agreement has sparked a ton of intense...

During the 2016 election, President Donald Trump promised Americans that, if they voted for him, he would 'Make America Great Again'. Now, in 2018...

A mother in Iowa did all the right things that a parent is supposed to do when hiring someone to watch their children. She got recommendations,...

Both Tom Brady and Ivanka Trump are happily married people, with children, and going about their own separate lives. According to Ivanka's mother...

Latest News Stories

Santa came to one New Jersey neighborhood early this year, and many parents who were stressed out about holiday obligations are breathing a sigh...

One state has had quite enough of Trump's border wall plans.

The wall President Trump wants to build along the country’s southern border...

When it comes to the U.S. economy and jobs, Donald Trump says that he has what it takes to get it moving again. At the Iowa Republican Party's...

Of the many great things that go along with the game of football, the traditions have to be at the top of the list. Whether we’re talking about...

Nuclear power plant workers are accustomed to being around potentially dangerous materials, but this discovery left them rattled.

An...