FYI: Investors are salivating
at the potential
to break Washington gridlock with Donald Trump as
president alongside a Republican Congress; recalling
Reagan, the narrative has become aggressive deregu
-
lation, tax reform and infrastructure spending; bond
markets have reacted violently, discounting reflationary
success, a scenario that we believe will be tested;
sequencing of policy priorities, the reali
ties of Republican
disunity and the uniqueness of the president himself are
significant drivers of outcomes; Reagan’s “miracle” first
required a recession, massive interest rate hikes and a
22% bear market, and that was when US
government
debt
-to-GDP was 2
5%
vs. today’s 78%.
Consider
staying
the course in a well
-diversified global portfolio as
much
uncertainty remains and volatility is apt to remain high.
Regards,
Ted
https://www.morganstanleyfa.com/public/projectfiles/gicweekly.pdf
