CNBC’s Ron Insana, who had spoken out again Donald Trump all during the campaign, now says the financial markets are backing the president elect’s blueprint to make America greay again.
“I think the financial markets are telling us, loudly and clearly, that President-elect Trump's deals are all quite possible,” Insana wrote for CNBC.com.
“For those who think compromise is in the air, the markets have already told us that a rather large portion of the trump agenda is being priced in to individual stocks and the broader market.
The message of the markets is clear. Passing the Trump agenda, much like his candidacy, is not only possible, but also very likely a new reality,” Insana wrote.
“The jump in stock indexes, including two consecutive record highs for the Dow; the run-up in banks, financials, pharma and bio-tech; the explosion in the price of copper; the shocking jump in interest rates and a meaningful slump in emerging markets, all tell us that investors are making large-scale bets that a Republican president, and Republican Congress, will move swiftly to enact as much of candidate Trump's agenda as swiftly as possible,” Insana said.
“The first thing that a President Trump can and, will likely, do is reverse many of President Obama's executive orders. He can also roll back specific regulations, like the Department of Labor's Fiduciary Standard rule for financial advisers,” Insana said.
“That rule requires F.A.'s to put a client's interests before his, or her, own; offer greater transparency on potential conflicts of interest and disclose more about how they are compensated when selling specific products. The rule, opposed by the financial services industry, to a certain extent, could have been a profit-limiting regulation, which is now expected to be among the first regulations removed from the books,” Insana said.
“A large-scale tax cut is now possible, which would comprise lower corporate and individual tax rates, lower capital gains and dividend taxes while the estate tax may well be eliminated,” Insana said.
Comprehensive tax reform, which takes longer, could also include repatriation "holiday" for corporations that hold a significant cash hoard overseas. The proceeds of those repatriated taxes could be used to fund infrastructure programs, hence the jump in the price of copper and heavy industrial stocks.
Meanwhile, another financial guru who also hadn't backed Trump is now asking those unconvinced to give The Donald a chance.
Billionaire investor Warren Buffet urged Americans to rally around Donald Trump, saying the president-elect "deserves everybody's respect."
"I support any president of the United States. It's very important that the American people coalesce behind the president," Buffett said in an interview with CNN.
"That doesn't mean they can't criticize him or they can't disagree with what he's doing maybe. But we need a country unified," Buffett added.
"You have to choose between two people and I chose Hillary," saying that her temperament was the number one reason why he endorsed and voted for her. Buffett said he understands why Trump won. Many Americans are resentful about the wealth gap in the country.
Thousands took to the streets Saturday across the United States as demonstrations against Trump continued in New York, Chicago, Los Angeles and beyond.
Protesters rallied at New York's Union Square before picking up steam and taking their cause toward Trump Tower. Police set up barricades in front of some of the most expensive stores in Manhattan as the group made its way along Fifth Avenue, the AP reported.
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