Donald J. Trump recently called for a cap on credit-card rates, sought to block large investors
from purchasing houses, and announced restrictions on stock buybacks and executive pay.
The Justice Department also opened a criminal investigation into Fed Chair Jerome Powell's
alleged mishandling of a building-renovation project.
Wall Street believed Trump was an ally but this may now be in question.
“'Expect the unexpected and position portfolios accordingly,'
said Dan Ivascyn, chief investment officer at Pimco, the bond powerhouse.
Pimco has made changes to its portfolio, including buying more debt from non-U.S. issuers.”
https://www.msn.com/en-us/money/markets/wall-street-is-suddenly-on-the-defensive-with-the-president/ar-AA1U9ZUY
Comments
Yes, exactly whose ally is he now? US markets need a wakeup call.
-Tariffs and Trade Intervention: Implementing aggressive protectionist tariffs, including a universal 10 percent tariff on nearly all countries and higher rates on some, which has led to trade wars and market disruption.
-Government Equity Stakes: Arranging deals where the government takes direct equity stakes or a "golden share" in major corporations, such as a 10% stake in Intel and a "golden share" in US Steel after its acquisition by Nippon Steel.
-Revenue Sharing: Requiring private companies, like Nvidia and AMD, to pay the federal government a percentage of their revenue from sales to specific foreign markets (e.g., China) in exchange for export licenses, which some have called "extortion".
-Targeting Business Leaders: Personally and publicly attacking CEOs of companies like JPMorgan, Apple, and Harley-Davidson, which critics argue is a move to suppress business freedom of expression and demand political obedience.
-Politicizing Regulatory Bodies: Using government powers, including antitrust suits and the IRS, to target political opponents and companies that do not align with administration goals, such as attempting to block the AT&T-Time Warner merger due to a dispute with CNN's coverage.
-Interfering in Corporate Decisions: Attempting to influence specific private business decisions, such as a directive for Coca-Cola to change its sweetener formula.
These actions certainly don't correspond with free market capitalism often previously touted by certain factions.