February 6, 2017

SMOOT SAILING:

Wall Street Remembers Why It Was Afraid of President Trump (Eric Levitz, 2/06/17, New York)

[W]hile Trump seems less than sincere in his economic populism, he appears to be quite genuine in his nativism. His first weeks in office have featured radical immigration restrictions enacted via executive order, vows to repatriate global supply chains, and noises about defunding the United Nations.

Now, Goldman Sachs is starting to remember why it was once "with her."

"Following the election, the positive shift in sentiment among investors, business, and consumers suggested that the probability of tax cuts and easier regulation was seen to be higher than the probability of meaningful restrictions to trade and immigration," a group of Goldman Sachs economists, led by Alec Phillips, wrote in a note late last week. "One month into the year, the balance of risks is somewhat less positive in our view." [...]

Finally, there are the "recent developments," themselves, which "serve as a reminder that the president is likely to follow through on campaign promises on trade and immigration, some of which could be disruptive for financial markets and the real economy."

Posted by at February 6, 2017 6:19 PM

  

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