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Larry Summers: Markets Ignoring Massive Trump Transition Risks

The ramifications of a Trump presidency will be far-reaching, and the markets are so far completely ignoring the amount of uncertainty associated with it. From Bloomberg :

Summers said the combination of protectionist measures, along with big foreign policy changes and potential domestic social problems, should be reflected in the market action. But that's simply not the case, with stocks continuing to rally unchecked since November.

He also downplayed the effects of repatriation of overseas cash by U.S. companies, noting that almost all of those firms already have plenty of cash held domestically as well. The monies will likely be used for dividends, buybacks, and M&A, rather than job creation, Summers said.

iShares S&P 500 Index ETF ( NYSE:IVV ) rose $1.35 (+0.6%) in premarket trading Tuesday. In 2016, the second largest ETF tied to the benchmark S&P 500 index gained 11.09%.

IVV currently has an ETF Daily News SMART Grade of A (Strong Buy) , and is ranked #2 of 108 ETFs in the Large Cap Blend ETFs category.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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