President Trump Creating a Lot of Hope in US Economy
Chicago Real Estate billionaire Sam Zell advises savvy investors to keep the faith despite some rough spots in the early weeks of President Donald Trump’s Administration.
“I think he’s creating a lot of hope,” he he said in a TV interview.
“I think that the last 8 years has been a period of lack of confidence by the business community in the political leadership of our country and I think the result has been failure to make commitments and failure to take risks, corporate America has more cash today and balance sheet at any time in history,” said Mr. Zell, chairman of Equity Group Investments and a member of the Forbes 400.
“How do you make commitments when you don’t know what tomorrow is going to be like?” he asked.
He said the Key to Trump’s success in part will be slashing most of the burdensome regulation imposed by former Pesident Barack Hussein Obama.
“The regulatory burden has been just unbelievable, I mean, I know we are a small player in the regulation world and cost of compliance has gone up five times in the last four years,” Mr. Zell said.
“I think that the biggest opportunity that trump has is to create stimulus by loosening up the regulatory environment which by definition means creating stimulus without creating debt to pay for it,” he said.
A recent survey found that US economic growth is expected to accelerate this year and next, on the back of President Trump’s promised tax cuts and infrastructure spending are implemented.
The economy will grow a solid 2.3% this year and 2.5% in Y 2018, according to 50 economists surveyed by the National Association for Business Economics. Those rates would be up from 2016’s anemic pace of 1.6% when Mr. Hussein Obama was at the helm.
The survey also found that 70% of economists think financial markets are too optimistic about the impact of President Trump’s proposals, should they be enacted.
The S&P 500 stock index has risen about 6.5% since the Presidential election on anticipation of faster growth stemming from President Trump’s policies.
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