Journalist: Donald Trump won. No discussion. Wall Street knew it a month before. What changes, then, for the markets?
Gordon Gekko: Wall Street didn’t know the outcome. But, he bet on Trump and he was right. Chapeau! Click, checkout.
Q: Nothing changes then?
GG: Look at the prices and you will see how it changes.
Q.: The trends are the same, they are accentuated with the accomplished fact. Stocks, long rates and the dollar. Everything reacts strongly upwards. Good stock. And the bonuses are complicated. Nothing new under the sun, but a more intense sun?
GG: We crossed out the most feared scenario by far: not knowing who won the election. Agony was avoided. That’s the novelty. The VIX – the measure of expected implied volatility in the stock market – fell 20%.
Q: Trump’s victory is not the end of the world.
GG: And not because it is irrelevant. The arm wrestling was defined. And with a strong mandate from the voter. At this point it was the best that could happen. That there was a clear winner.
Q: Republicans control the Senate. The vigil was confined to the House of Representatives. Do you think it will clear up soon?
GG: No.
Q: And it is a key aspect.
GG: Fundamental to know what agenda can be promoted.
Q: A distributed Congress is not the same as a complete sweep that also gives Trump control of both Chambers.
GG: And unlike the 2016 sweep, now he has no dissidents in his own troops. He is the owner and lord of his party.
Q.: And he was not in his first presidency.
GG: Trump could not bury Obamacare because he failed to align the most radical wing of his legislators. Even though everyone was fervently against the health plan. This Trump, if he keeps the House of Representatives, will be much more powerful. The Tea Party rioters are not imposing conditions. And the Supreme Court, reformed by Trump in its composition, is made in his image and likeness.
Q: There is no better legal defense than a good attack. Are your tribulations in Justice over?
GG: It is a predictable side effect.
Q: This time Trump will be able to carry out his agenda. He has experience, Biden’s legacy is an enviable economy… What opposes him?
GG: The main opposition has already taken to the field. Long rates hover around the 4.50% area for ten years. They are a fearsome enemy. And the reality of the economic boom sets a limit. There’s no point in messing it up.
Q: From now on.
GG: The advantage is that Trump has the ball in his favor. He decides whether or not to accelerate against obstacles. But, there is no need to go there.
Q: What are you going to sacrifice of everything you promised? The tariffs, the deportations of illegal immigrants, the lowering of taxes?
GG: Since its agenda is dotted with strong contradictions, it has to define priorities. Trump doesn’t want a strong dollar. And he already achieved the opposite. Trump wants interest rates to go down. And this time the FED is going to give him the pleasure, tomorrow. But he won’t be able to do it for much longer if he doesn’t recalculate his plans.
Q: It’s difficult, then.
GG: It’s easy. Trump chooses what to do. He is a businessman. You have to decide what is your best deal. Of course, you must understand well what the consequences of your actions are. Although the blow warns. But we already saw in 2016 that it does not eat glass, even if it is wrong. It is clear that he is a lover of tariffs, although he does not seem to understand who pays them. It is not China but the Americans themselves. If you never put a tariff on iPhones or the most popular electronic products…
P.: …It’s because deep down you understand it very well.
GG: He knows what he is doing and now has government experience. It’s not Einstein, either. You have to wear a casino hat three times. But he is very smart. He always came out unscathed. Built a brand. Multipurpose. Successful from real estate to politics. It seems to me that the best way to take advantage of the legacy of an economy that is today the envy of the world and at the same time keep the mystique of its political agenda alive is to give Elon Musk a relevant role in the government. Trump’s agenda is inflationary and the FED will sooner or later have to come out on top. As the long rates already warn us. Musk should be the antidote by cutting public spending and giving greater space to technology.
Q: That was also part of the campaign. Why not run it.
GG: Because Trump does not do charity for third parties. And even less so that they overshadow him. And Musk is also a very smart player. You’re not going to underestimate him. We know that Trump does not have re-election. And somehow he is condemned, even if his management is very successful, to be a lame duck. But not from the moment we go. Review your entire history. Not just the most glamorous. Don’t forget the events of January 6, the storming of the Capitol. Trump knows how to think outside the box. He will want to find a way back to his future so that it is not cut short in four years. And from that point of view, perhaps sharing a billboard is not interesting to you.
Source: Ambito
I am Pierce Boyd, a driven and ambitious professional working in the news industry. I have been writing for 24 Hours Worlds for over five years, specializing in sports section coverage. During my tenure at the publication, I have built an impressive portfolio of articles that has earned me a reputation as an experienced journalist and content creator.
