Trump dumps market bumps
16 May 2017
Surprise firings of key officials are not unique to our own head of state. American President Donald Trump axed the head of the FBI, begging the question whether it relates to the ongoing investigation of the Trump election campaign’s links to Russia. For investors, the pertinent question is how markets are impacted. The answer is that it is simply too soon to tell. Markets rallied strongly after Trump won the election in November, on the assumption that his policies will favour businesses by cutting tax rates, reducing regulation and spending on infrastructure. However, this ‘Trump bump’ had already seemingly run out steam as it became apparent that implementing his agenda faces many hurdles, not least of which are the constant self-created controversies. This is just the latest in a series.