FINANCIAL ADVISORS` INITIAL TAKE ON TRUMP
Based on a campaign that was seen by many as merely pure rhetoric instead of substantive, advisors are not an exemption to those who are wary of what the newly elected president will bring and how it will affect the field of finance. The GOP bet's dictatorial nature and blurry outlook of his plans was considered an extremely rocky position, however many continue to support him like some officials from his party, despite the several risks posed by his proposed policies.
In terms of benefits, many advisors back Trump’s plan to lower tax rates and widen the scope of tax base especially since this would be paired with deductions which would simplify the tax code. Aside from this, the US chief is also deliberating on shifting to fiscal solutions to resolve economic problems instead of relying solely on monetary policy. Most advisors predict that equity markets would be rewarding to investors as a result of tax reform, which would be advantageous on both sides. Before he recently confirmed the immigration ban, many advisors are also expecting he would take back his initial decision regarding illegal immigrants.
However, there are more reasons advisors are uneasy with the new US head. As what was earlier mentioned, he was not able to lay out a clear plan for the government even during his campaign. Although he had several ideas on what he wanted to do, he failed to establish these ideas into a concrete framework.
Another looming conflict for him is the lack of support he has in congress as many dislike him, including some from his own party. This may be a hindrance to him getting most of his duties done and his initiatives passed. In addition to the burden, he is also planning to ramp up spending for defense and cybersecurity, which is seen as an addition to deficit along with interest rates.
Probably the most important conflict advisors are foreseeing is his trade policies and economic proposals, particularly his plan to impose a 45% tariff on Chinese goods. Trump may not have specified his plan, but his seemingly intentional venture into isolationism would pose as an obstacle to the development of free trade, which could damage multinational corporations as well. Moreover, his proposal to let Medicare negotiate drug prices may also hurt the pharmaceutical industry.
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