Displaying items by tag: Trump

(Washington)

The word is that Robert Mueller’s probe into a possible obstruction of justice charge against President Trump is almost concluded, but that he is thinking to delay filing to charge to allow him to wrap up other facets of the investigation. The reason why is that the Mueller team reportedly thinks filing the charges would make it harder to finish the rest of the investigation because of an increasing lack of cooperativeness on the part of witnesses, in addition to Trump likely moving to shut the investigation down.

FINSUM: If Mueller actually filed charges against Trump it would be a monumental political bombshell. Mueller is sharp enough to not try to do that half-cocked.

(New York)

There are currently a lot of catalysts for small caps. The idea of favoring the segment started around the time of Trump’s election, when import tariffs seemed likely. Trump’s America first stance was also generally seen as favorable to small caps, which tend to have a high proportion of domestic sales compared to their larger cap peers. Now, with Trump set to implement metal tariffs and the threat of a trade war looking like a reality, small caps may once again shine, as they would be shielded from most of the international trade fallout. Furthermore, small caps will benefit the most from the new tax cut package.

FINSUM: There are a lot of catalysts that will help small caps. It seems like a great time to buy.

(Washington)

In what is being seen as similar to Nixon’s China moment, President Trump has agreed to a meeting with North Korean leader Kim Jong Un. The meeting will take place within the next few months and the location has not been determined. It is very unusual for two top leaders to meet without a series of lower officials meeting first, but the White House says the approach is suitable in this situation because Un in the only one qualified to make decisions in the very authoritarian regime.

FINSUM: This is a sign of progress after 60 years of conflict, but it also raises the stakes for both sides.

(New York)

The market had a big sell-off this week when it was announced that top Trump economic adviser, and former Goldman Sachs executive Gary Cohn was leaving the White House. The departure elevated worries about a trade war and left investors feeling that there was no moderating voice left in Trump’s inner circle. However, the Wall Street Journal reminds investors not to be overly worried as this “Teflon” market seems to always shake off fears and heads higher.

FINSUM: The WSJ’s argument is not very strong, but trade war does seem like an issue where fear greatly outpaces reality.

(Moscow)

US-Russia relations, already on the rocks, took a definitive turn for the worse yesterday. Using the Russian version of the state of the union address as a platform, Russian leader Vladimir Putin decided to use his speech to warn the US and the West to listen to Russia as it has bolstered its nuclear capabilities. In a nearly two-hour speech, Putin said “Efforts to contain Russia have failed, face it”. Putin highlighted new nuclear capabilities, such as cruise missiles with unlimited range. The speech was accompanied by videos of the weapon systems.

FINSUM: The rumor is that Putin did this more for internal political purposes than to actually antagonize the West. Hopefully that is the case.