A Trump Victory Would Be Bullish For The Dollar

The latest Global Investment Strategy Weekly Report entitled “A Trump Victory Would Be Bullish For The Dollar” challenges the notion that a Trump win would be bad news for the dollar. All three of Trump’s signature policy proposals – increased deficit-financed infrastructure spending, a more restrictive immigration policy, and trade protectionism – are dollar bullish. These policies could cause the U.S. economy to overheat, forcing the Fed to raise real rates more than it otherwise would. In terms of other asset classes, equities could rally in the near term following a Trump victory, but are likely to face stiff longer-term headwinds. Treasurys would still suffer modest losses, while, ironically, the one asset that could suffer the most from a Trump victory is gold.

To access the report entitled “A Trump Victory Would Be Bullish For The Dollar”, please click here.

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