Financial markets are starting to "wake up" to the possibility of a Donald Trump presidency in the wake of Hillary Clinton's recent health concerns and tightening polls, according to Bank of America Merrill Lynch Head of Global Rates and Currencies Research David Woo. He says investors are still underestimating the real estate mogul's chances of ascending to the highest office in the land, and what a seismic change this could be for markets and the world's largest economy.
While the outsider candidate poses a risk to one of 2016's hot investment strategies, he could prove to be a massive boost for the greenback and U.S. economy.
"The U.S. economy would take off in a big way" if Trump were elected and Republicans control both legislative houses next year, said Woo, thanks to the fiscal stimulus that Trump would enact. Trump has pledged to spend at least twice as much as the Democratic nominee on infrastructure and also enact a massive tax cut, two measures that would entail a renewed issuance of Treasuries...
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