Bloomberg Talks Evercore Chairman Emeritus Ralph Schlosstein Talks Markets Under Trump
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Jan 22, 2025 Ralph Schlosstein, Chairman Emeritus of Evercore, offers a sharp look at market performance during the Trump era. He delves into how tariffs serve as negotiation tools and their implications for the economy. Schlosstein also discusses the striking resilience of the S&P 500 amidst political fluctuations, and the transformative role of the Federal Reserve. The conversation shifts to the burgeoning field of AI investments, drawing parallels with the 1990s internet bubble while highlighting the risks and rewards of innovation in today's market landscape.
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Tariffs vs. Growth
- Businesses perceive a conflict between Trump's pro-growth policies and his tariff inclinations.
- They believe the impact of tariffs will be less severe than his rhetoric suggests, given his focus on market performance.
Market Influence on Trump
- Trump is influenced by market performance, viewing positive trends as validation of his policies.
- He may adjust his approach if markets react negatively, making market sentiment a potential check on his decisions.
Market Outlook and Risks
- The 2023 market rally is driven by pro-growth policies, but high valuations pose a risk.
- Strong earnings growth could justify valuations, with potential for further market gains despite current levels.