Sense of Unease Permeates Wall Street With Trump's New Policies
By Staff Reporter
The Trump administration is getting serious on its path to economic isolation and Wall Street has started to feel the intensity of President Donald Trump's Protective Policies when the Dow hit 20,000 since January 25. Just a few days with the new presidency, things are sinking in places.
With its second sequential three-digit descent, the Dow dropped to 107 points putting it on its third straight daily loss. Although, this is only a 1.4 percent decrease since last week with a total point drop of 270.
The President has shared his opinion against the "One-China" Policy and, upon his assumption in office, has broken ties with the Trans-Pacific Partnership.
Recently, Trump signed the Executive Order imposing a 90-day travel ban for seven major Muslim countries which has affected further trade relations.
Uncertainties are starting to grow among Wall Street strategists seeing the anti-foreigner rhetoric the President is imposing is a single key for foreign investment to go down.
Think Markets UK Chief market analyst Naeem Aslam said in a report that, "There are a number of questions on Donald Trump when it comes to handling issues of trade deals, immigration, protectionism and developing a sound foreign relationship." Investors are increasingly worried about the impending "Trade War" at stake if major changes in foreign policies result to US economic isolation.
Northern Trust Wealth Management Chief Investment officer Katie Nixon wrote. "Trump's pro-growth agenda has the ability to add momentum to the economy. Immigration and trade proposals may offset some of the benefits to tax reform."
"Border tax, significant limitations/constraints on trade and limits on immigration could also lead to a significant rise in inflation that could threaten the market rally," Nixon added. Questions are now rising how President Trump will be good for the stocks.
President Trump's approach to governing and his way with the global economy is different from previous US Presidents. Wall Street analysts and strategist will have to see the changing trend of the US economy.