XPost: alt.politics.trump, alt.fan.rush-limbaugh, talk.politics.guns   
   XPost: sac.politics, talk.politics.misc   
   From: nospam@ix.netcom.com   
      
   Pimco, one of the world’s biggest bond fund managers, has warned that US   
   president-elect Donald Trump’s economic plans could lead to the economy   
   “overheating” and could halt interest rate cuts, posing a danger for   
   stocks that shot up in the wake of his presidential election victory.Dan   
   Ivascyn, chief investment officer at Pimco, said US equity markets could   
   suffer a reversal after rising sharply on the Republican candidate’s   
   emphatic win. The S&P and Nasdaq Composite indices both surged to fresh   
   record highs this week in anticipation of tax cuts, looser regulation and   
   trade tariffs.But such “reflationary” policies, in a US economy that   
   already has “a lot of momentum”, have the potential to feed through into   
   inflation, he warned.“It’s not as simple and easy as just a one-way   
   reflationary trade where risk assets should rejoice,” Ivascyn told the   
   Financial Times.“You want to be a little careful about what you wish for,”   
   he said. With US inflation still stuck above the Federal Reserve’s target,   
   “there is some risk that some of this exuberance can work its way back   
   into both inflationary expectations or actual inflation”.He said Trump’s   
   policies “are coming at a time where you already have a lot of positive   
   growth momentum, they could lead to this overheating”.Ivascyn’s comments   
   echo concerns held by some other investors and strategists that the   
   reaction to this week’s election result across riskier asset classes   
   stands at odds with the potential for rising inflation and a prolonged   
   period of tight monetary policy. Expectations on the path of US interest   
   rates have been a key driver of US markets in recent years.While the S&P   
   500 has risen by more than 4 per cent this week, putting it on course for   
   its biggest weekly gain this year, Trump’s victory has also pushed bitcoin   
   to record highs and driven junk bond spreads — the premium paid by low-   
   grade borrowers to issue debt over the Treasury — to a 17-year low.   
      
   https://www.ft.com/content/cc2a0e34-2ee8-4567-945d-7b57bd266844   
      
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