Washington Trust Wealth Management releases analysis of Trump’s victory on marketplace

WASHINGTON TRUST WEALTH MANAGEMENT recently released an analysis on President-elect Donald J. Trump’s victory and its potential impact on the marketplace, detailing a number of different scenarios of what’s to come.
WASHINGTON TRUST WEALTH MANAGEMENT recently released an analysis on President-elect Donald J. Trump’s victory and its potential impact on the marketplace, detailing a number of different scenarios of what’s to come.

WESTERLY – Wealth management advisers are closely monitoring President-elect Donald J. Trump’s post-election messaging to see what impact he might have on the marketplace.
Washington Trust Wealth Management last week released an analysis on Trump’s victory, as the Republican topped Democratic candidate Hillary R. Clinton. The analysis details a number of different scenarios of what’s to come, but admits there’s a certain level of uncertainty when it comes to Trump.
“Markets dislike uncertainty, and the Trump victory may well lead to a Brexit-like selloff in the S&P 500,” according to the wealth management group, a division of Westerly-based Washington Trust Bancorp Inc.
“Similar to Brexit, however, the selloff may be short-lived depending on Trump’s post-campaign messaging and the degree to which [U.S.] Congress is viewed as the countervailing balance against extreme change. After a bitterly divisive campaign, Trump has few friends in Congress and continued gridlock would not be surprising,” according to the analysis.
Trump during the campaign expressed an interest in lowering tax rates and renegotiating trade terms, the latter of which Washington Trust believes the President-elect will have a difficult time accomplishing.
“We expect that when Trump is confronted by the strong trade lobby that benefits from current trade terms he will back down dramatically on protectionist vitriol. Additionally, since trade terms are often written into law, the approval of Congress may be needed to effect major changes to agreements,” according to the analysis.
The wealth management division cast doubt on Trump’s contention that China is deliberately weakening yuan policy. It also sees Trump as a sympathizer to the domestic fossil fuels industry, which could lead to a less aggressive regulatory climate for U.S.-based producers of coal, oil and gas.
Washington Trust also examines Trump’s challenge with the possible repeal of the Affordable Care Act, his advocacy for infrastructure spending and what relationship he might expect with a spending-sensitive Congress.
The wealth management group also takes a look at what this all might mean for the mid-term elections in 2018.
The full analysis can be viewed here.

No posts to display