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Ed Yardeni: Stocks Will Surge 10 Percent More on Trump Rally

Ed Yardeni: Stocks Will Surge 10 Percent More on Trump Rally

 (Getty/Spencer Platt)

By    |   Sunday, 05 February 2017 03:36 PM

Veteran market watcher and Newsmax Finance Insider Ed Yardeni thinks President Donald Trump will deliver on market-friendly policies.

Trump’s plan to reduce government regulation, if implemented, could have a salutary effect on stocks, Yardeni, president and chief investment strategist of Long Island–based Yardeni Research, told Barron's.

Yardeni predicts the market could add another 10 percent or so before a revival of “animal spirits” would provoke renewed caution, Barron's reported.

"It would be a mistake to bet against what President Trump might accomplish on the policy side," the Newsmax Finance Insider said.

"I’m giving him the benefit of the doubt, hoping good policies get implemented and bad ones forgotten. We could get substantial tax cuts. All his proposals don’t need to be implemented for the Trump rally to be validated," he said.

"If you get $1 trillion to $2 trillion coming back from overseas because of a lower tax on repatriated corporate earnings, that would be very powerful in terms of keeping the market up," he said.

However, he does seem hesitant about some aspects of Trump's strategy. 

"I hope Trump’s protectionism is really more about moving from free trade to fair trade and bilateral agreements, rather than shutting off trade relations. But renegotiating everything on a bilateral basis can get dicey," he said.

Barron's directly asked Yardeni: Could anything cause a panic in the markets?

"A trade spat with China might. The Chinese would suffer a lot more. The U.S. went from an administration of—how shall I put it?—community organizers to one run by wheeler-dealers. The Trump team isn’t made up of professional politicians. But it isn’t out to destroy world trade; it is pro-growth," Yardeni said.

"The new administration is going to want to make deals. It is looking for weak points on the other side of the table and will press them. Trump changes his mind so much that it is pretty easy for him to say, “well, we got a better deal than I promised you,” and market it that way."

While many of his campaign vows have yet to be fulfilled into presidential accomplishments, Trump will be a demanding leader who applies the best of his negotiating skills to push for U.S. growth, bestselling author David Horowitz 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

However, fellow Newsmax Finance Insider Hans Parisis contends that the Federal Reserve seemingly appear to doubt Trump's tactics. The nation's central bank actually sidestepped many potential economic landmines in its first statement of the Trump presidency, Parisis wrote in a recent blog.

Parisis recently noted that the statement from the FOMC did not go into any of the potential controversies that may plague the Fed over the coming months:

  • The balance between quantitative and monetary tightening;
  • The necessity of offsetting any regulatory easing with quantitative and monetary tightening;
  • The necessity of countering any fiscal easing with policy tightening and how to handle the inflation implications of the muted Trump import tax on consumers by tariffs.

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

© 2021 Newsmax Finance. All rights reserved.

Veteran market watcher and Newsmax Finance Insider Ed Yardeni thinks President Donald Trump will deliver on market-friendly policies.
ed yardeni, donald trump, stocks, investors
Sunday, 05 February 2017 03:36 PM
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