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‘Trump 2.0’: Corr 1 Shock Or Stock-Picker’s Paradise?
Since 2023, we've lived in a micro-driven market, which is to say if you decompose a given stock's p
“He cited three factors, the first of which are expectations for decent growth (macro call)”
“anytime you set about shaking the foundations (and Trump’s doing that on multiple fronts), there’s a risk you collapse the whole edifice”
I must side with our Dear Leader here. By many accounts, Trump’s actions have called into question the widely-held notion that he is business friendly. Instead, CEOs have to deal with much higher levels of policy and macro uncertainty. That is are starting to impact corporate decision making, especially when it comes to capex and hiring.
Exhibit One is how to react to tariff announcement which may or may not be quickly rescinded or subject to carve-outs and exemptions. What sane CEO would put his/her career at risk by investing hundreds of millions of dollars based on promised tariff protections? It is 100% more rational to put cash flow into personally beneficial share buybacks rather than gambling on ephemeral White House policies!
He’s business friendly all right. Just have to spend a few million of those dollars to invest in his protection racket (who wants some meme coins?). After all, it’d be a shame if someone slapped some tariffs on your business.