“Undoubtedly, the Trump administration will be igniting many ‘fires’ on its front door and around the world. Let’s wait and see when it will be China’s turn.”
One thing to note at the outset: the idea that because piling fiscal stimulus atop an overheating economy is likely to drive inflation and therefore people will buy stocks, has a major flaw. Namely that if most of the “benefit” from fiscal stimulus goes to inflation and not growth, then it’s exceedingly likely that you’ll get a poor growth-inflation outcome (i.e. stagflation).