NEW POLL : Financial Community Changes Course and Hops on The Trump Train
After a bitter election cycle, followed by a historic upset at the polls, and tears and rioting, America has settled down and is feeling really optimistic about the future under a President Donald Trump.
America is heavily guided by our financial markets, and if they’re happy and operating at an optimal pace, the vibe in the country follows.
Right now consumer confidence is high, stocks are soaring, Christmas spending is up, and the jobs outlook is promising.
Americans haven’t felt this optimistic in decades.
A new financial industry poll shows that confidence in Trump’s plan is fueling a growing optimism in the future.
From Fox Business:
From November 28 through December 1, 2016, we polled 370 people in the TabbFORUM financial markets community about President-elect Trump’s proposals and what they meant to them, the markets and their organizations. Forty-four percent of respondents worked for banks, brokers, exchanges, market makers, or professional money managers; 3% were academics or regulators; 35% were vendors and/or consultants; and 18% either didn’t specify their positions or checked “other.”
In brief, the financial community, while having trepidations about a Trump presidency, has come around to the opportunities aligned with audacious infrastructure spending proposals, lower taxes, higher debt, the reduction of quantitative easing programs, reduced financial regulations, and a more business-friendly environment. While the community continues to be concerned by the potential civil, social, and macroeconomic impacts of some of President-elect Trump’s campaign promises, the climate has changed from one of concern to one of mild, if not restrained, optimism.
The greatest consensus from the survey was that financial regulation will be watered down and banks will be the beneficiary, as 86% of the community felt that financial regulation will decline and 82% felt that banks would be winners. Seventy-four percent of the sample believed Dodd-Frank would be repealed. If Dodd-Frank were repealed, the environment could be significantly altered for the large banks, depending upon what rules were implemented in its wake (only 28% believed Glass-Steagall would be reinstated).
There was significant optimism among respondents that Trump’s large infrastructure proposal and promise of reduced regulation would change the outlook for active investment strategies, as market participants believed that active management and hedge funds would benefit more from these policies than long-only, ETF and passive strategies.
The community indicated that it believes that the new administration’s policies would benefit energy, equities, metals, and the US Dollar, while negatively impacting the rates market, credit, and housing.
Amy Moreno is a Published Author, Pug Lover & Game of Thrones Nerd. You can follow her on Twitter here and Facebook here.
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