Wall Street Week Bloomberg Wall Street Week - November 8th, 2024
Nov 9, 2024
Rebecca Patterson, former chief investment strategist for Bridgewater Associates, joins Glenn Hubbard, Columbia Business School professor and ex-chair of President Bush's Economic Council, alongside Zanny Minton Beddoes, editor-in-chief of The Economist, and Elizabeth Economy, senior fellow at the Hoover Institution. They discuss the market implications of a second Trump presidency, focusing on U.S.-China relations and potential trade impacts. The conversation touches on economic policies, capitalism perceptions, and the prospect of increased foreign direct investment post-election.
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Market Reaction to Election Certainty
- Markets prefer certainty, which explains the positive reaction to the clear election outcome.
- Additional factors like potential tax cuts and deregulation also contributed to the rally.
Pro-Growth Factors
- Lower corporate taxes and a positive attitude towards dynamism are seen as pro-growth.
- Increased certainty also contributes to a positive market outlook under a new administration.
Inflationary Risks
- Investors should consider the potential inflationary impact of tax cuts and trade wars.
- The Fed's response to inflation could significantly impact market performance.