Global trade would collapse amid a tariff war. The dollar would be in free-fall as investors fled the chaos. The stock market would tank as money was pulled out of the country. When Donald Trump was elected as President of the United States, there were lots of dire predictions about the impact it would have on the economy and the Dow Jones index.
And what happened? The ‘Trump Bump’ as it became known on Wall Street was one of the strongest for any President in a long time. In the year after his election, the S&P 500 rose by 21 per cent, which was the best return since George Bush Senior way back in 1988, and, as it happened the fourth best ever (the record, in case you happen to interested, is held by Roosevelt with a 30 per cent gain in 1932). His critics were proved very wrong, and anyone who bought into the market when he was elected did very well.
Right now, and in much the same way, the markets are also under-pricing a Boris Bounce. Sure,
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