There’s a real possibility that former President Donald Trump may retake the White House in November, according to the latest polls. Therefore, it’s worth asking: How might a second Trump term impact stocks? Tom Essaye, publisher of Sevens Report Research, recently shared his expectations for which corners of the stock market might outperform, and which might struggle, if Trump triumphs in an expected election rematch with President Joe Biden.
U.S. stocks will outperform their international peers Four more years of Trump would likely translate to four more years of outperformance by U.S. stocks compared with their international peers. Trump has been vocal about his plans to double down on his international trade policies if reelected which would likely mean increased tariffs on imports from China and elsewhere. He has already threatened 60% tariffs on all Chinese goods entering the U.S. “Obviously, those policies would be negative for Chinese shares and emerging markets more broadly, as they would increase trade tensions,” Essaye said. As a result, investors can expect Chinese stocks, and emerging-markets more broadly, to struggle, like they did during Trump’s first term and like they have, relative to the U.S., for much of the past 15 years. Between January 2017 and January 2021, t …
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U.S. stocks will outperform their international peers Four more years of Trump would likely translate to four more years of outperformance by U.S. stocks compared with their international peers. Trump has been vocal about his plans to double down on his international trade policies if reelected which would likely mean increased tariffs on imports from China and elsewhere. He has already threatened 60% tariffs on all Chinese goods entering the U.S. “Obviously, those policies would be negative for Chinese shares and emerging markets more broadly, as they would increase trade tensions,” Essaye said. As a result, investors can expect Chinese stocks, and emerging-markets more broadly, to struggle, like they did during Trump’s first term and like they have, relative to the U.S., for much of the past 15 years. Between January 2017 and January 2021, t …nnDiscussion:nn” ai_name=”RocketNews AI: ” start_sentence=”Can I tell you more about this article?” text_input_placeholder=”Type ‘Yes'”]