Donald Trump called 'chaos agent' as 'Bond King' Bill Gross warns his presidential win could disrupt markets

WASHINGTON, DC: Renowned billionaire investor and PIMCO co-founder, Bill Gross, has sounded the alarm, cautioning that a victory by Donald Trump in the presidential election could spell trouble for bond markets.

Gross, often referred to as the 'Bond King,' emphasized that a Trump presidency would exacerbate US fiscal deficits, adversely affecting bond investments.

Donald Trump's presidency would aggravate US fiscal deficits

"Trump is the more bearish of the candidates simply because his programs advocate continued tax cuts and more expensive things," Gross said in a recent interview with the Financial Times.

While acknowledging that both President Joe Biden and Trump have presided over substantial deficit spending, he asserted that "Trump's election would be more disruptive."

In 2016, Gross said that he did not vote for Trump or for Clinton.

This warning from Gross comes amidst growing apprehension surrounding the upcoming presidential election, with Trump awaiting jury deliberation on a lengthy and high-profile 'hush money' criminal trial.

If found guilty, Trump would become the first former US president to be convicted of a crime.

Joe Biden's plan to raise corporate taxes clashes with Donald Trump's tax cut

According to a White House fact sheet, Biden's proposed tax plan involves increasing the corporate tax rate from 21% to 28%, as well as raising the minimum corporate tax rate from 15% to 21%.

In contrast, the Tax Cuts and Jobs Act of 2017, implemented during Trump's presidency, reduced the corporate income tax rate from 35% to 21%. Trump has expressed his intention to uphold this rate if re-elected.

 

Earlier in the month, Gross penned a commentary on the US fiscal deficit. He highlighted that the deficit, primarily fueled by a substantial issuance of Treasury bonds, is presently deemed essential to stimulate economic growth, thereby contributing to the upward surge in bond yields.

The ballooning US deficit has led Gross to veer away from his renowned bond strategy.

In his latest communication, he proclaimed the demise of "total return." Speaking to the FT, Gross revealed his shift in investment focus towards oil and gas pipeline ventures and tobacco stocks.

Netizens insight into Bill Gross's take on stock market under Donald Trump's presidency

A user tweeted, "So the health of the bond market is the top priority for the country!!??"

"He is correct," a second said.

A third added, "Trump is a chaos agent. Has anyone been paying attention?"

"It does not matter who will be elected. Neither Dems nor the Republicans have any interest in increasing taxes. The chart below speaks for itself….," chimed a user.

"Awww too bad but I doubt it," read a tweet.

 

 

 

 

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