SocGen's Edwards: 'Fragile' US economy will be exposed when Trump's 'sugar rush' tax reform wears off next year

'Marmite character'

Tom Eckett
clock • 1 min read

Société Générale's bearish strategist Albert Edwards has warned the US economy is set for an "unpleasant" turn once US President Donald Trump's stimulus package wears off in 2019.

Unlike his "Marmite" character however, the bearish analyst noted how investors have "gorged" themselves on his tax reform. US equity markets have been in a euphoric state since President Donald Trump passed his historic Tax Cuts and Jobs Act reform, which saw corporation tax cut from 35% to 21%. He added Trump's fiscal stimulus was ill-timed for where the US economy is in the economic cycle but "perfect" for the electoral cycle. US midterms: Damp squib or another 'sugar rush' for US economy? "People either love or loathe Trump. He is like Marmite," Edwards said. "But you have t...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Markets

Investors turn defensive in January as rate cut expectations change

Investors turn defensive in January as rate cut expectations change

State Street Risk Appetite index

clock 08 February 2024 • 1 min read
London remains 'key destination' for IPOs

London remains 'key destination' for IPOs

KMPG survey of ECM leaders

Cristian Angeloni
clock 15 January 2024 • 2 min read
Market Movers Blog: S&P 500 hits 5,000 mark for the first time

Market Movers Blog: S&P 500 hits 5,000 mark for the first time

Latest news and analysis

Investment Week
clock 09 January 2024 • 1 min read
Trustpilot