The first days of Donald Trump at the head of the first economy of the planet have sat well to the country’s stock market. Investors have celebrated the start of the new president with purchases, who have led to the S&P 500 to revalue more than 2% in the last five days. It is the best balance for a first presidential week since Ronald Reagan began his second term in 1985. Although the presidential discourse of both candidates has arrived at a very different moment for the markets, with Reagan inheriting one of the cheapest markets in history, and Trump one of the most expensive, both achieved a first stock market of increases. The new Republican president has achieved it with a softer message than he promised in the electoral campaign in the front of tariffs, lowering the tone against China, an initial position that investors liked.
The first market score with the legislature that has just begun in the United States has been positive. Donald Trump’s initial message has liked investors. The new president has combined a softer message on the tariff front, especially against China, lowering its threats, with a speech that maintains its tax and policy cuts project to try to boost growth in the country, while pressing to the organization of oil exporting countries to lower crude oil prices, artificially inflated, and calls for interest rates throughout the world at the time when the price of the barrel begins to fall.
This message has convinced the markets, and Wall Street has noticed it in their quotes. So much, that The first week with Trump at the head of the country ends with advances of the environment of 2% for the S&P 500the best balance in a presidential start that has been seen since 1985, when Ronald Reagan’s second term began.
Trump has achieved this milestone, even despite the fact that the US bag is now quoted on high multiples. And not only that: the new US president has inherited the most expensive stock exchange. According to the data published by Robert Shiller, using the ratio per that was baptized with its own name (per shiller, which collects the price of markets against the average benefits of the index in the last 10 years, and adjusted to inflation) , Trump has inherited a S&P 500 in 37 times its benefit, the most expensive in history, against Regan, which began its mandate with the index in 9 times according to this same metric, the cheapest moment in a presidential start that is remembered .
From Pimco, Tiffany Wilding, an economist from the manager, and Andrew Balls, a global fixed -income cio, consider that “although the range of possible results has expanded in both directions -from the brightest positive aspects to the most shady negatives-,, American risk assets are increasingly based on optimistic scenarios. Promoted by the expectations of tax decline and relaxation of the regulations, US actions have reached new maximums, while credit differentials are close to historical minimums, “they point out.
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