From CNBC:

Former U.S. President and Republican presidential candidate Donald Trump holds a rally in New Hampshire ahead of the presidential primary election. Guillermo Felices, PGIM global investment strategist warns of potential risks of a second Trump presidency, with potential for “tantrums” in bond markets. Much focus also on short-term data and Federal Reserve’s potential rate cuts.

Felices warns of risks associated with a Trump win, fiscal expansion, and military conflict escalation. He anticipates that the economic backdrop at the time of a second Trump presidency will be critical in determining stability in the bond market. Trump’s proposed tax cuts may further affect the fiscal risk at the time of high deficit and deteriorating fiscal position in recent decades.

Risks are also associated with Trump’s proposed 10% tariff on all U.S. imports, which analysts believe could negatively impact the U.S. economy and consumers. Additionally, the geopolitical landscape, including Trump’s demeanor of making erratic foreign policy decisions, is also of concern. With simmering tensions between China and Taiwan and Russia’s war in Ukraine, there are concerns about increased market risks and uncertainty.



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