This in an excerpt from this book
The election of Donald Trump as the President of the United States took the world by surprise. The Presidential win of Donald Trump will remain as one of the most dominant features of the economy of the world that happened in 2016 and will continue to embark itself in the global market for next series of years. Until now, the stocks of the United States are soaring and setting records. The other global markets and economies are taking their lows in the economy to the rallies as the global investors have been selling bonds and buying stocks in their belief that the pro-business administration of Donald Trump will help them in tax cuts, stimulate the fiscal policy and the deregulation to inflame the inflation and economic growth in the largest economy of the World. Such headwinds are expected to continue in 2017 at least not the ones which are highly elevated by means of political expectations which imply that this is the biggest risk in the world about facing stocks. However, this would also yield higher returns that will inhibit multiple expansion of the economy and the strengthening of the USD which would lay the importance on corporate earnings or guidance. With the Presidential election of Donald Trump, the world can expect more stock availability in the global market on an assumption that the President continues to use his Twitter account!
Depending on the structuring of the new infrastructure in the United States and the infrastructure of the investments and considering the fact that spending could serve as a boon to the global growth and development, one can consider buying items at lowered interest rates. However, these decisions will be made on the economics as well as the political fundamentals. The struggle for power between the White House and the Republican leaders on Capitol Hill will be the guide to the flow of economy as it will form the determining force whether the traditional visions of the Republican leaders for tax cuts and small government will win over the populist impulses of Donald Trump.
China Gradual Decline:
It is the final year of the first term of President Xi Jinping in 2017, he has been facing several challenges in the maintenance of the second largest economy in the world. The government of China is aiming for higher growth rates in 2017 of 6.5 per cent for the next 5 years but recent experiences of China have revealed that on reaching or exceeding the desired goals would not be enough to achieve the stability of the economy of China unless these aims are achieved in a sustainable manner.
Since the financial crisis has happened, the policymakers in China have expanded the growth by giving relevant support to the corporate sector of the country with cheaper credit to enhance investment in the infrastructure and the export sector of China. However, the credit has been continuously leading into poor productive investments which have led to the overall increase in the debt. As per a recent survey conducted by International Monetary Fund, the overall growth of credit has been around 20 percent every year that is significantly higher than the nominal growth of the GDP. This cannot be considered as a sustainable strategy or planning to achieve future growth and development in the Chinese economy. President Xi Jinping will have to strive in a more dedicated manner to achieve the balance in the economy of China by increasing the consumer spending in the upcoming year. This will be possible if the economy of China will continue to enhance and stimulate the global growth for going forward and achieving the desired results.
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