This article is from 10/24. Posting today as a follow up to how the market reacted at first to what was perceived as "good news for Trump." It is nothing I did not already know. However, I think there are people who aren't aware of it. At least that seems to be the case.
https://www.theatlantic.com/business/archive/2016/10/donald-trump-business/505097/
The remarkable thing about the perceived impact of a Trump Shock is that in almost every presidential election in the last 140 years, equity markets rose when Republican presidential candidates won elections and fell when Democrats took the White House. GOP victories typically buoy investor hopes. This year, the prospect of a President Trump terrifies investors. In this way, too, Trump is a historic outlier.
The second notable thing about the Trump Shock factor is that investors seem terrified of a Trump presidency, even though his plan to substantially lower corporate income taxes could theoretically increase public companies’ after-tax profits and raise their stock prices. In other words, Trump’s temperament and unpredictability are so scary to so many bankers that they are confident the economy and stock market will be significantly better off under a candidate pledging higher taxes on corporate income.
For a year and a half, Trump’s core claim to presidential competence has been his business record. But his campaign has been disastrous for his business and nightmare-inducing for the global investor community. Count it as one of the last historic accomplishments of a truly historic campaign: Trump is so frightening he’s turned the global financial markets against a tax-cutting billionaire.
https://www.theatlantic.com/business/archive/2016/10/donald-trump-business/505097/
The remarkable thing about the perceived impact of a Trump Shock is that in almost every presidential election in the last 140 years, equity markets rose when Republican presidential candidates won elections and fell when Democrats took the White House. GOP victories typically buoy investor hopes. This year, the prospect of a President Trump terrifies investors. In this way, too, Trump is a historic outlier.
The second notable thing about the Trump Shock factor is that investors seem terrified of a Trump presidency, even though his plan to substantially lower corporate income taxes could theoretically increase public companies’ after-tax profits and raise their stock prices. In other words, Trump’s temperament and unpredictability are so scary to so many bankers that they are confident the economy and stock market will be significantly better off under a candidate pledging higher taxes on corporate income.
For a year and a half, Trump’s core claim to presidential competence has been his business record. But his campaign has been disastrous for his business and nightmare-inducing for the global investor community. Count it as one of the last historic accomplishments of a truly historic campaign: Trump is so frightening he’s turned the global financial markets against a tax-cutting billionaire.
