Equity markets have yet to price in the risk of an inflation resurgence if Donald Trump re-claims the US presidency this year, Amundi’s chief investment officer Vincent Mortier has said.
A re-election of Trump as president of the US in November is likely to lead to higher inflation in the world's largest economy, the CIO of Europe's asset management giant said, a scenario markets are currently not pricing in. Mortier noted an "animal spirit" currently prevails in markets, fuelled by the expectation that the potential return of a Trump administration would benefit equities through lower taxes and reduced regulation. However, Trump's proposed economic plan for a second term involves a repeat of raising tariffs on imports, cutting taxes, and deporting millions of undocu...
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