Investing.com – While the rally sparked by the election of Donald Trump has already been well corrected, investors are increasingly focusing on the negative facets of a new Donald Trump presidency.
This is particularly the case of Anthony Scaramucci, of SkyBridge Capital, who was Trump's communications director at the White House for 11 days in 2017.
Recently asked by Business Insider about the sharp rise in markets following Trump's election, Scaramucci said it only happened because investors weren't taking some of the biggest economic policies literally. aggressive actions by Mr. Trump.
Conceding that cutting the corporate tax rate from 21% to 15% would have a beneficial effect on earnings, Scaramucci said stocks could at least benefit from a near-term boost before other factors don't catch up with them.
“The revenue from this reduction falls directly into the bottom line,” Mr. Scaramucci said, noting that companies “can use it to buy back stock. They can use it for dividends. They can use it for profits”.
However, Scaramucci said he was concerned about Trump's other economic proposals.
“Let me tell you one thing: If Trump implements 50% of what he says, you will have a stock market crash like you haven't seen since the 1920s,” the investor said, in a reference to the famous crash of 1929.
He also noted that even Elon Musk, now Donald Trump's most important supporter, is of the same opinion.
Mr. Scaramucci was referring to a post on
“You want to deport 15 million people? You will crush the economy. You will crush our tax revenue. You are going to shake up the job market,” Scaramucci said on this subject.
