Miles Staude

Like many people, the idea of President Donald Trump horrifies my liberal sensibilities. Nevertheless, he's proven masterful in navigating the realities of the US political system. What remains to be seen is how much President Trump looks like Candidate Trump. The Republicans are set to control all three branches of government, and Trump's election could ease the partisan gridlock that has paralysed US policymaking for years. Indeed, many of his off-the-cuff policies have the potential to drive growth and equity markets. He's promised large-scale spending on infrastructure projects and a corporate tax rate reduction from 35% to just 15%. Indeed, Trump's biggest policy challenge will be his own party in Congress, who are far more fiscally conservative than he appears. However, the limitations on his power mean he, like all presidents, will be forced to compromise. A Trump presidency may therefore be far more positive for growth and equities than markets have initially priced in. Ultimately, a coherent - albeit illiberal government - committed to fiscal stimulus may be a 2017 market good news story.


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