10 March 2025, 08:55

By David Buik

The US Presidential Election on 5 November 2024 sent President Donald J Trump back for a second term to the White House, after a 4-year break, which was not without its controversies.

Politically the US has never looked more divided than it was then and is now.

However, stripping out any personal prejudices, stock market protagonists liked the idea of a low tax regime, with cuts in public expenditure providing incentives for business, including cuts in interest rates. Many felt that the eye-watering level of debt at around $36 trillion could be serviced and managed.

President Trump has very cleverly surrounded himself with loyal supporters, many of whom have limited or no political experience – JD Vance, Scott Bessent (Treasury) and Howard Lutnick (Commerce) are classic examples.

The most unorthodox appointee to Trump’s administration is Elon Musk, the controversial businessman and pioneer of Tesla, who is not officially part of the Government. He was appointed to cut waste in government.

Notwithstanding these controversial appointments, Wall Street responded positively and by the time of the inauguration day - 20th January 2025 - the NASDAQ and S&P 500 were in ‘rock ‘roll’ territory. However, since then investors have seen the errors of their ways. There has been a measurable sell-off.

President........

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