JPMorgan/Gratzer: Trump's First Two Years Could Be Highly Influential

According to Stefan Gratzer, Managing Director of JP Morgan Private Bank, the first two years of Donald Trump's second term could be "quite effective" if there are policy changes regarding taxes, deregulation, and cryptocurrency. Gratzer, who is the head of Swiss institutional wealth management at J.P. Morgan, stated, "One of the things that truly made a difference in Trump's policies was related to cryptocurrency, so let's see how this plays out. This could be something entirely new, and no one knows what it will mean. There is a lot of talk about deregulation, which is clearly beneficial for banks like ours, but we still need to see." Many expect Trump’s policy promises, including tax cuts, to accelerate economic growth and create new jobs for lenders. Gratzer emphasized the importance of Trump's plans to reduce taxes. "When you buy a company's stock, you are essentially purchasing its future earnings minus taxes. If the taxes are lower, your stock price will be higher. I think that was part of what we saw last week."