Quantcast

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

Jihadist group ISIS continues to inflict terror on innocent citizens across the globe, and Donald Trump is pointing some fingers on why they rose...

Residents of a Nigerian community have complained about the violence and non-existent security in their area and have repeatedly asked their...

Police in Michigan received a call about a suspicious man in a silver van. A 16-year-old girl got lost, without a way to call her parents. She was...

Despite attacks from both sides of the political aisle, Donald Trump still holds a healthy lead over all Republican presidential candidates. Last...

What started out as a nice game at Yankee Stadium on Wednesday between the New York Yankees and Minnesota Twins ended with a freak accident....

Latest News Stories

Throughout our country’s history, there has been some form of gridlock in the nation’s capital that has prevented things from getting done. In...

You've heard the saying, "One man's trash is another man's treasure."

This is true. And apparently, one man's doorstop could potentially...

A Washington D.C. law professor is now challenging the eligibility of Ted Cruz, who was born in Canada, to run for president. Victor Williams, who...

A Texas sheriff has been under attack from an atheist organization who demands he remove "In God We Trust" decals from all of his police cruisers...

Donald Trump, during Wednesday night’s presidential debate, said Hillary Clinton encouraged women to charge him with sexual assault and also sent...