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Gordon Pape: Don’t be fooled by the Trump-led market rally Add to ...

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No one is quite certain what will happen when Donald Trump takes over as U.S. President on Jan. 20. So far, stock market investors have convinced themselves that the overall thrust of his administration will be positive for business.

This initial response is premature and may be dead wrong. Investors appear to have assumed that the President-elect will implement all the business-friendly policies he favours (e.g. lower taxes, less regulation, more infrastructure spending) and none of the negative positions he outlined (e.g. trade wars).

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