As the Dow Jones Industrial Average index continues to flirt with a record high many are asking the question, is Donald Trump good for the US stock market? Despite the doom and gloom surrounding his presidency the US stock market is booming and many are now wondering whether the so-called “experts” have got it all wrong. So, is Donald Trump good for the US stock market?
Business credentials of Donald Trump
Whether you like it or not, Donald Trump has been there, done it and bought the T-shirt having survived bankruptcy to rise again from the ashes. This is a man who has faced is critics with a confidence that few can carry off whether indeed he actually believes it behind the scenes. In the world of business you need to have confidence in yourself, confidence in your decisions and an ability to fight your corner. Surely Donald Trump has done enough to suggest he has all of these?
So, while many continue to focus on Donald Trump’s real estate investments it is worth noting that he has more than just property in his business portfolio. This is a man who has hotels, golf courses and an array of other businesses in countries around the world. He has befriended leading politicians, fallen out with many, but he was still voted in by the US public. If the US public believe in his business credentials, why should his critics be given a free shot and be allowed to tarnish his reputation?
Diplomacy is not his strong point
While there is no doubt that Donald Trump has much to offer US businesses and US investors the same might not be said of trade negotiations with overseas partners. As we stand on the eve of his inauguration as president of the USA he has already alienated a number of leading politicians around the world. Trump’s continued use of social media has seen him forced to apologise for his comments on numerous occasions – and today he still continues to ignore advice to stop tweeting.
Even though the US is the major economic powerhouse around the world, although China is not too far behind, there is still a need for diplomacy. Donald Trump will be a useful card for the US business arena but it will be his international relationships which allow the US to build or retreat from current and future trading deals. The US needs a confident president able to talk with foreign politicians and diplomats, one who knows when to give concessions and when to push for his main goals. If anything it will be is undiplomatic demeanour which puts in jeopardy US trading relations overseas and could in a worst-case scenario impact the worldwide economy.
Conclusion
If Donald Trump is supported in his policies and aims for the US business arena, and the US economy, he will likely be successful and deliver on his promises. Unfortunately the same cannot be said for his diplomacy overseas as he has already alienated a number of leading politicians around the world. Confidence is vital to be US president but he needs to learn when to give concessions and when to stick to his guns. The Dow Jones Industrial Average index is now flirting with an all-time high but there are serious concerns behind the scenes about Donald Trump’s ability to consolidate and build on overseas trading relationships.