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Ron Insana: Wall Street Too Complacent About Trump Political Risk

Image: Ron Insana: Wall Street Too Complacent About Trump Political Risk

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By    |   Monday, 20 Feb 2017 09:19 PM

Ron Insana warns that Wall Street continues to set record highs on a daily basis while seemingly ignoring the controversial and bizarre start to President Donald Trump’s administration.

“The markets have risen on reasonable expectations for a drastic change in fiscal policy, tax policy and regulatory policy, all of which, when taken together, would stimulate the economy, improve corporate profitability and let loose the animal spirits that, well, animate economic activity,” he wrote for CNBC.com.

But "if this administration should be compromised by the taint of foreign assistance, the financial markets at home, and abroad, are ill prepared for the storm that may be brewing."

“All of this threatens not only to undermine the administration's agenda, but its very legitimacy. That should be of some concern, not only to Washington, but to Wall Street and Main Street,” Insana wrote.

“The stock market has not given the possibility a single thought, given the near historic reduction in risk, the depressed level of the VIX, or so-called, "fear index,' and the general optimism that has propelled the market since early November,” he wrote.

Insana noted that Trump “has denied knowledge of such contacts and has said, repeatedly, he has no business interests in Russia, no political ties to Russian officials or oligarchs, nor does he owe any Russian banks, nor individuals, any money. We can only hope that this is true. But if this administration should be compromised by the taint of foreign assistance, the financial markets at home, and abroad, are ill prepared for the storm that may be brewing,” Insana wrote.

On its own, the U.S. economy, far from being a "mess,' is doing quite well and supportive of equity valuations, rich though they may be, Insana said.

"If there is any hint of concern, it is in the behavior of gold and Treasury securities. We have seen early signs of a "flight to quality" in their recent rallies, amid the political uncertainties about which Wall Street appears unconcerned," Insana wrote.

"I wouldn't stop paying attention to the barbarous relic nor U.S. bonds. They may be hinting that there is more serious trouble brewing in Washington than anyone on Wall Street currently expects," he wrote.

While his first few weeks have certainly been volatile and controversial, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz recently told TheStreet.com.

Trump won’t be an ideological purist like Republicans who support free trade but don't fight for fair trade, Horowitz said.

“If you just say, ‘well we're for free trade and we're not going to look at the deals that we make’ -- that's not a good idea,” he said. “We've had an anti-business president now for eight years who doesn't take a hard-nosed attitude towards these deals. Trump is going to get better deals for us, which is still free trade.”

Horowitz's new book, "The Big Agenda: President Trump's Plan to Save America," reveals Trump's "first 100 days strategy" to roll back Obama's legislative and executive record.

Horowitz's new book is the first book about the Trump presidency and has soared to the top of the Amazon bestseller charts, becoming the No.1-selling book on the web. Trump will also lead the way in making infrastructure spending to boost the U.S. economy, Horowitz said.

“If the economy grows as it will under Trump, there's going to be a lot more money to spend,” he said.

"Big Agenda: President Trump's Plan to Save America" is available at bookstores everywhere – or get your copy on Amazon – Click Here Now

(Newsmax wire services, Reuters and Bloomberg news contributed to this report).

© 2017 Newsmax Finance. All rights reserved.

 
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Ron Insana warns that Wall Street continues to set record highs on a daily basis while seemingly ignoring the controversial and bizarre start to President Donald Trump's administration.
Ron Insana, Wall Street, Trump, Risk
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2017-19-20
Monday, 20 Feb 2017 09:19 PM
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