Jim Grant’s view on Donald Trump
Jim Grant also discussed the Donald Trump presidency in the CNBC interview. He said, “I think Donald Trump is the avatar of tail risk. He is personally the expression of possible disparate extreme outcomes. Things could be, as he might say, great. They could be really nice or not.”
According to him, Donald Trump will either be very positive for the market or very negative for the market (VOO) (IWM) (SPY) (QQQ), but likely not somewhere in the middle. Whether or not Trump’s proposed changes become a reality will affect markets (VFINX).
According to Jim Grant, Trump’s tax restructuring and infrastructure investment plans could be beneficial for various businesses in the US. But at the same time, Trump’s recent immigration plan is creating concern for market participants. Many fund managers have said that populism has become a major influence in the present scenario.
Jim Grant on the economy
Grant believes that fundamental factors are improving. In the present scenario, inflation is showing upward movement. The labor market is also showing improvement and wage growth is also picking up. This shows that domestic demand could also pick up, which will likely be a major driver of earnings growth (SPY).
In the next part of this series, we’ll analyze Jim Grant’s view on the Federal Reserve.