2 things Wall Street has wrong about Trump 2.0: M&A and inflation
Ahead of President-elect Donald Trump's return to the White House, Bank of America Securities head of US equity strategy and US quantitative strategy Savita Subramanian sits down with Market Domination Hosts Julie Hyman and Josh Lipton to talk about what the market has wrong about the Trump trade. "The market is reading the Trump trade as just really excellent for M&A. And M&A is going to be the big theme over the next few years just because now companies can engage in M&A where they were blocked in prior years, [but] I think this is wrong," Subramanian says. The strategist explains, "I think companies are going to buy other companies if there's accretion, if there's value. Being able to buy a company, that's a necessary condition for engaging in M&A, but actually unlocking value and finding accretive value, that's really what companies want to do." Another thing Subramanian says Wall Street has wrong about Trump's second term is "the idea that the Trump trade is just purely inflationary, that's also, I think, incorrect or maybe oversimplifying the issue." She outlines that, while tariffs are "potentially inflationary," tax cuts "could be actually disinflationary." To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Naomi Buchanan.
