Andri Tringidou: Trump's plans could lead to a rise in economic growth but at what cost?

“The recent US presidential election results, with Donald Trump's return to office, could potentially reshape the global economic landscape, though it's too early to predict with certainty,” Andri Tringidou, Managing Director at Argus Stockbrokers proposes.

Among other things, she also suggests that one sector that is anticipated to experience a significant inflow of capital is the Bitcoin and Bitcoin-related names.

Asked to comment on the potential impact of the election results, Tringidou told CBN, “While we're still assessing the full implications, and clearly the market is of the opinion that Trump's plans would lead to a rise in economic growth; however, the most important question is: at what cost?”

As the Managing Director pointed out, “Early indications suggest we might see a shift towards more protectionist trade policies. Potential tariffs, mainly on Chinese imports and other goods, could impact global trade pushing inflation higher in the US and potentially slow the pace of Federal Reserve rate cuts. In addition, post-election Treasury yields rose due to the likelihood of stronger economic growth and a strong dollar. It’s possible that the government may run a larger deficit; therefore, the long-term effects are debatable.”

Tringidou continued, “We anticipate a stronger US economy as the US President suggested growth-friendly policies, including income tax cuts, lowering corporate taxes and deregulation. Most likely several agencies are likely to be less restrictive with the result to help M&A or speed up approvals within the healthcare sector. One sector that is anticipated to experience a significant inflow of capital is the Bitcoin and Bitcoin-related names.”

“In terms of sectors,” she went on to note, “financials and traditional energy like oil and gas could be seen more attractive under Trump administration, while other sectors such as technology and alternative energy are likely of a mixed bag.”

“Overall, Trump's policies are expected to create a mixed landscape across sectors and regions, with some benefiting from deregulation and tax cuts, while others may face challenges due to trade policies and geopolitical tensions,” Tringidou concluded.

Outlining his plans for the economy, US President-elect Trump has said he plans to make the USA “the crypto capital of the planet” and “bitcoin superpower” once he takes office.

Bitcoin soared to a new record high as traders bet on Trump’s victory, viewing him as a pro-crypto candidate and with the digital currency hitting as much as $75,005.08 on the morning of 6 November, topping its previous all-time peak of $73,797.98 in March this year.