Tags: Nouriel Roubini | Donald Trump | Honeymoon | Investors

Nouriel Roubini: Trump's Honeymoon With Investors Might Be Ending

Image: Nouriel Roubini: Trump's Honeymoon With Investors Might Be Ending

 (AP/Julie Jacobson)

By    |   Monday, 06 Feb 2017 10:39 AM

Famed economist Nouriel Roubini of New York University warns savvy stock watchers that market rally is already running out of steam, and President Donald Trump’s honeymoon with investors might be coming to an end.

“To be sure, expectations of stimulus, lower taxes and deregulation could still boost the economy and the market’s performance in the short term. But, as the vacillation in financial markets since Trump’s inauguration indicates, the president’s inconsistent, erratic and destructive policies will take their toll on domestic and global economic growth in the long run,” Roubini wrote for Project Syndicate.

“It is little wonder that corporations and investors have been happy. This traditional Republican embrace of trickle-down supply-side economics will mostly favor corporations and wealthy individuals, while doing almost nothing to create jobs or raise blue-collar workers’ incomes. According to the non-partisan Tax Policy Center, almost half the benefits from Trump’s proposed tax cuts would go to the top 1% of income earners,” he wrote.

“Yet the corporate sector’s animal spirits may soon give way to primal fear: The market rally is already running out of steam, and Trump’s honeymoon with investors might be coming to an end. There are several reasons for this,” he wrote.

However, one of the most respected business icons of our time argues that Trump is on the right road to truly "Make America Great Again," but he could use additional guidance.

Trump would be wise to appoint a supporting cast of free-market conservatives to his administration, Forbes Media CEO Steve Forbes tells Newsmax TV.

"They've got to get some of these people in because the president can do so much but you got to have a supporting cast or at least some players in there who can push this agenda," Forbes told "Newsmax Prime" host J.D. Hayworth.

Among his picks, Forbes touted Newsmax Finance Insiders Larry Kudlow and Stephen Moore for possible positions in Trump's administration.

"I hope Larry Kudlow gets in perhaps as the head of the Council of Economic Advisers. Perfect post for him," said Forbes, author of "Reviving America."

"Stephen Moore, whether it's in the White House or with Vice President-elect Pence. Very critical to have his voice in there," Forbes told Newsmax TV in an exclusive interview.

"Others like David Malpass who understands the Fed better than anyone else. Get him in there. He was a supporter of Trump," Forbes said.

(Newsmax wire services contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

 
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The market rally is already running out of steam, and Trump’s honeymoon with investors might be coming to an end
Nouriel Roubini, Donald Trump, Honeymoon, Investors
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2017-39-06
Monday, 06 Feb 2017 10:39 AM
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