The Business Times
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NEWS ANALYSIS

Biggest danger in Trump era is risk of US economy overheating

The president-elect and his supporters seem determined to shake things up, but this could mean market volatility

    • There are many reasons why 2025 could see painful sell-offs in addition to euphoric rallies, including the risk of inflation, the reckless speculation that comes with deregulation, and the rich valuation of the stock market.
    • There are many reasons why 2025 could see painful sell-offs in addition to euphoric rallies, including the risk of inflation, the reckless speculation that comes with deregulation, and the rich valuation of the stock market. PHOTO: AFP

    Rob Curran

    Published Mon, Dec 30, 2024 · 05:00 AM

    MOST Wall Street strategists anticipate the 2024 rally gaining stronger momentum in 2025. Unfortunately, in the contrarian world of finance, optimism is not always a good sign.

    Almost everyone agrees that the US economy and stock market are now in the palm of president-elect Donald Trump’s hand. But what will he do with them all? Trump and his cadre of supporters, including Elon Musk, are determined to shake things up, and make the United States a more business-friendly place.

    The motto for the second Trump administration seems to be borrowed from Musk’s old stamping ground in Silicon Valley, which is to “move fast and break things”.

    US economyUS stocksDonald Trump

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