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.

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.

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.

Recommended

My must-read of 2020: a page-turning biography of Keynes
Investment strategy

My must-read of 2020: a page-turning biography of Keynes

John Stepek recommends some of his favourite financial books for you to read as lockdowns continue, including a surprisingly gripping biography of the…
31 Dec 2020
Five books to put on your Christmas list
Investment strategy

Five books to put on your Christmas list

Even if they’ve done nothing else, lockdowns – in whatever guise – have given us plenty of time to read. Merryn Somerset Webb picks five books to enjo…
7 Dec 2020
Four excellent books to get your teeth into while you remain holed up
Books

Four excellent books to get your teeth into while you remain holed up

Whether you’re going on a staycation (or even an actual holiday) or remaining holed up at home. Merryn Somerset Webb has four perfect books to educate…
6 Jul 2020
Theatre review: The Visit
Films

Theatre review: The Visit

Friedrich Dürrenmatt's Swiss classic The Visit, transported to 1950s America, poses the question: how much would you kill for?
28 Feb 2020

Most Popular

Of course bitcoin is a bubble – a bubble you can’t ignore
Bitcoin

Of course bitcoin is a bubble – a bubble you can’t ignore

Bitcoin’s wild ride is being called a bubble by many. And it is, says Dominic Frisby. But that’s not necessarily a bad thing. And it’s a bubble in whi…
13 Jan 2021
A simple way to profit from the next big trend change in the markets
Investment strategy

A simple way to profit from the next big trend change in the markets

Change is coming to the markets as the tech-stock bull market of the 2010s is replaced by a new cycle of rising commodity prices. John Stepek explains…
14 Jan 2021
I wish I knew what a SPAC was, but I’m too embarrassed to ask
Too embarrassed to ask

I wish I knew what a SPAC was, but I’m too embarrassed to ask

A financial instrument called a “special purpose acquisition company”, or SPAC for short, is growing increasingly popular in the US stockmarkets. But …
12 Jan 2021