Original Source: www.cnn.com
Wall Street remains skeptical of President-elect Donald Trump’s promise to expel millions of undocumented immigrants, suspecting that his planned immigration crackdown will not meet the heightened expectations set during his campaign. A recent Goldman Sachs survey shows that only 6% of investors foresee net immigration turning negative under Trump. This suggests that, despite anticipated restrictions, the inflow of newcomers will likely continue to surpass deportations, alleviating concerns for business owners about potential worker shortages and rising consumer prices.
Investors expect that annual immigration under Trump will average between 500,000 and 1 million people, a drop from previous rates but still reflecting a belief in sustained immigration despite the anticipated crackdown. Trade professionals warn that substantial deportations could disrupt industries nationwide, as these actions face legal hurdles and logistical challenges. Goldman Sachs analysts concluded that legal and operational limitations would hinder extensive executive actions desired by Trump, influencing their moderately low immigration forecast compared to pre-pandemic levels.
Meanwhile, doubt also surrounds Elon Musk’s ambitious claims to cut government spending significantly through the newly formed Department of Government Efficiency (DOGE). According to Goldman Sachs, just 10% of investors believe Musk can reduce spending by more than $400 billion per year, whereas a plurality expects cuts to be minimal or nonexistent. Experts warn that reaching Musk’s ambitious $2 trillion target would necessitate deep cuts into entitlement programs and defense spending, making it an uphill battle.
Trump’s promise of imposing higher tariffs looms large in investors’ minds, who fear the ramifications on the economy. In a recent Goldman Sachs survey, 60% of investors singled out tariffs as their top concern, fearing the impact on inflation and economic growth. Though apprehensive, the markets responded resiliently to Trump’s threats, as trading patterns showed the S&P 500 and Nasdaq poised for record highs, suggesting that investors are cautiously optimistic despite the uncertainties ahead.
This article explores investor sentiment in relation to President-elect Donald Trump’s deportation promises and Elon Musk’s proposed government spending cuts. It highlights Wall Street’s skepticism regarding the effectiveness and feasibility of Trump’s immigration policies and Musk’s ambitious budget goals. Given Trump’s expected influence on tariffs, the article also touches on the broader implications for the economy and investor confidence amid potential policy changes.
In summary, while Wall Street acknowledges the upcoming administration’s intent to enforce strict immigration policies under Trump’s leadership, the belief persists that more individuals will continue to enter the country than will be deported. Concurrently, skepticism towards Musk’s spending cut ambitions is palpable among investors, who predict modest government spending reductions rather than the drastic cuts he envisions. Additionally, the looming threat of heightened tariffs raises concerns across the investment landscape, yet the market reactions remain surprisingly positive, hinting at a complex economic outlook ahead.
