Few were surprised when US stocks jumped after Donald Trump’s decisive victory in the presidential election. Amid widespread assumptions of weeks of uncertainty, a clear result was always likely to prompt an initial relief rally. More unexpected was what has happened since.
The worry among economists and many bond investors, however, is that Trump’s policies could create broader economic problems that would eventually be hard for the stock market to ignore. Some of Trump’s policies, such as corporate tax cuts, could boost domestic growth.
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