Investors Eye Trump Card’s Election Impact

“The presidential election is eight months away but ‘political risk’ is already being felt on Wall Street, as money and politics collide in a flurry. . .”

In this article, Adam Shell describes how the circus-like 2016 presidential race is creating uncertainty on Wall Street.  This uncertainty centers on the candidates and how they promise to deal with select industries, trade, tax policy, and globalization.

For example, many of Donald Trump’s campaign speeches are protectionist in nature and some on Wall Street worry that Trump will build a wall around the United States choking off globalization and world trade.

For Wall Street, Hilary Clinton is also problematic.  She has been a vocal critic of the pricing practices of the pharmaceutical industry.  She is also a proponent for more regulation on the financial industry and has suggested that banks involved in speculative investments should pay a “risk fee.”

As the campaigns develops between establishment and anti-establishment  candidates, it should be an interesting run up to the November elections that could impact Wall Street and investors.

For more information, click here.  

Teaching Suggestions                           

  • You may want to use the information in this blog post and the original article to stress how politics, the financial industry, and investing are intertwined.

Discussion Questions

  1. How do you think the uncertainty associated with this presidential election affects the financial markets and investing?
  2. Why could protectionism hurt the U.S. economy and Wall Street investors?
  3. Is globalization good for the U.S. economy? Is it good for investors?

New Crisis Possible, But, Not Like 2008: Geithner

“Even with the challenges in the U.S. economy, America is a ‘lucky country.’ “

During a CNBC interview, former Treasury Secretary Tim Geithner said the market reforms after 2008 put “much more capital into the system” and “much tougher rules on risk-taking.”  He went on to say that the reforms are strong enough, if they’re not eroded, to buy this country a relatively long period of financial stability.

Although the American economy is doing relatively well and making steady progress at the present time,     a financial crisis will happen again at some point.  Still the structural reforms undertaken after 2008 can serve to mitigate any future damage.  Mr. Geithner concludes that if a financial crisis does happen in the future, the Federal Reserve and the government would need to act again.

For more information, click here.

Teaching Suggestions

You may want to use the information in this blog post and the original article to

  • Discuss how the economy affects the lives of the average U.S. citizen.
  • Point out specific steps the government took to stabilize the economy and the financial markets during the economic crisis that began in 2008.

Discussion Questions

  1. How does a healthy economy affect you and your family? How does a weak economy affect you and your family?
  2. At a time when many people believe the government is too involved in the lives of individuals and business, should the government take steps to stabilize the economy and financial markets during an economic downturn? Explain your answer.