Republican presidential nominee Donald Trump has made some on Wall Street nervous with his threats of building walls, implementing import taxes and boycotts. Trump’s policies would lead investors to sell their shares in companies like Ford Motor Co. and Apple Inc., and hang onto shares in companies that deal exclusively with domestic suppliers and customers.
But some strategists say they are unsure how to position their portfolios if Trump wins the presidency, mainly because the nominee has yet to divulge details on how these proposals would be implemented. Other proposals are contradictory.
Investors are curious how Trump would pass policies that clash with GOP views on lower taxes and free trade.
Market players watched the Republican National Convention very closely last week, particularly Trump’s speech, for clues on how the nominee would address tax and business issues. Scant details were revealed, which leaves many on Wall Street wary.
Paul Zemsky, Voya Investment Management’s chief investment officer told Reuters that a Trump presidency “would not be good for markets at all.”
Others say Trump’s chances of getting elected are “still low” and adjusting portfolios because of his proposed policies is “not likely to be profitable.”
Trump says he would renegotiate the NAFTA (North American Free Trade Agreement) with Canada and Mexico, and plans on building a wall between the U.S. and Mexico. The GOP nominee has also threatened to impose a 35% tariff on products made in Mexico by certain companies.