Trump and the economy

Book review: Investing in the Trump Era: How Economic Policies Impact Financial MarketsSome much-needed pointers as to the issues investors should follow closely in the Trump era.

Dr Matthew Partridge
By
published
in Features

900-Investing-in-the-Trump-Era-100

Published by Palgrave Macmillan, £17.99

Buy at Amazon

In the run-up to the last US presidential election, most people predicted that if Trump won the stockmarket would tank. The market did tumble following Trump's victory, but only for a few hours before recovering. Since then, the bull market has continued and the S&P 500 is a third higher than it was before election day. Yet economist Nicholas Sargen argues that this hides longer-term problems that must be tackled for the economy to keep growing.

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In his new book, Sargen looks at the impact of economic policies on the market. The first section looks at the relationship between financial markets and growth. Part two considers how fiscal and regulatory policies affect growth. Next, he examines the impact of trade, monetary policy and exchange rates on the US economy. Finally, he discusses how globalisation has affected the United States and investors.

If you're looking for Trump-related stock tips, you will be disappointed. But Sargen does provide a detailed, yet concise explanation of how economic policies affect financial markets. He also offers investors some pointers as to the issues they should be following more closely. Since many of these have been crowded out by the focus on Trump's tweets and brash behaviour, this is a much-needed corrective.

Dr Matthew Partridge
Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

Follow Matthew on Twitter: @DrMatthewPartri

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