Trump Trade: Ignoring the Market Risks

The transcript discusses the risks associated with Donald Trump's presidency, market reactions, and predictions. It highlights the impact of valuations and yields, oil prices, and yield spreads on the economy. The conversation also touches on creditworthiness, inflation, and the changing market landscape, emphasizing the unpredictability of economic trends.

What was the initial market reaction to Donald Trump's election?

• Markets crashed immediately.

• Markets remained stable.

• Markets exploded positively.

• Markets were unaffected.

What economic factor is mentioned as a potential concern for equities?

• High oil prices

• Strong employment rates

• Low inflation

• High yields

How did the start of the current year differ from the previous year in terms of market conditions?

• Oil prices were collapsing.

• Stocks were rallying.

• Yields were decreasing.

• Spreads were widening.

What is a major factor that could affect a company's ability to pay its bills?

• Strong dollar

• High interest rates

• Low creditworthiness

• High inflation

What was a significant concern at the beginning of 2016?

• Collapsing oil prices

• Rising stock prices

• Strong economic growth

• Stable yield spreads