Trump And Bessent Do A 180-Degree Turn And That Is A Very Bullish Factor For The Stock Market

May 30, 2025 1:25 PM ETSPDR® S&P 500® ETF (SPY), QQQSPY, QQQ104 Comments
Hugo Ferrer
669 Followers
(9min)

Summary

  • Markets thrive on fiscal stimulus, and Trump's initial belt-tightening stance triggered a stock market crash and credit market turmoil.
  • After the crash, Trump and Bessent reversed course, shifting from deficit reduction to prioritizing economic growth over debt control.
  • This policy U-turn is highly bullish for stocks, as markets favor continued government spending and stimulus over austerity.
  • With the government now focused on growth at any cost, macro factors point to a positive outlook for risk assets and equities.

Government Shutdown - Federal Default

Greggory DiSalvo

Last December 1, weeks after President Donald Trump's election victory and practically two months before he took office, I published a counterintuitive analysis where I explained that markets love stimulus, such as a high fiscal deficit, and hate

This article was written by

669 Followers
Professional investor registered in Spain, Professor of the Stock Market Expert Degree at the University of Alicante (Spain) and columnist in several national media.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

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