A 2024 Trump Presidency could help juice battered stock markets, according to ex-White House communications director Anthony Scaramucci, but warned about his former boss’s tendency to rock political stability.
“I am running because I believe the world has not yet seen the true glory of what this nation can be,” he told an audience at his Mar-a-Lago club.
“He’s the Holy Trinity of market lubrication,” he said, in remarks reported by news agency Reuters.
“Stimulus, through deficit spending, low interest rates—easy money—and a lack of regulation.”
“The flip side is [investors] also know that he creates what markets absolutely hate: political instability,” he said.
“If any one of those other candidates can present themselves with some of the Trump messaging without the Trump drama, there might be opportunities.”
Within the first two years of being in office, Trump had tweeted at least 60 times about the stock market, according to CNBC, frequently taking credit for its successes.
Simpson noted that Trump was “likely just warming up for what could be another turbulent 2-years (at least) for U.S. politics,” but conceded that a lot could happen before the 2024 vote.
‘Doubtful’ investors bullish on Trump 2.0
“If inflation is not under control, it will put the Dems in a very weak position by the elections,” he said.
“However, it’s a long arduous road to the White House and as of yet Trump wields no presidential powers, so it could take some time for ...
...markets to take notice—which is likely why they showed no meaningful reaction today, from an announcement we all fully expected.”
“Things have changed a lot since then so it’s doubtful investors would be concluding a new Trump presidency would necessarily be good for shares,” he said.
“If anything, his decision to run may accentuate the divisions going on amongst Republicans, with many blaming him for their poor midterm election showing and these divisions may ...
...even lessen the chance of a more market friendly Republican administration gaining the presidency in 2024 so some investors may actually see it as a negative for markets.”