Is the presidential honeymoon over?
It was one of Donald Trump’s most prominent pre-election pledges, so when the much-vaunted repeal of Obamacare failed to secure the support it needed in Congress, Wall Street signalled its disapproval via a massive share dump, bringing the stock market’s seemingly unstoppable rise to a screeching halt.
If the stellar performance of the S&P over the past few months demonstrated a level of confidence in the ability of the new president to deliver on his promises, this abrupt volte-face is a reflection of a more sombre mood. Tumbling US shares prefaced similar dips in Tokyo, Frankfurt, Paris and London as global markets wobbled over the prospect of the Trump administration’s ability to deliver on a raft of growth-boosting measures.
Mental strength has become as much part of the successful training formula for sportsmen and women as balanced nutrition and intensive physical conditioning. Sports coaches know that without the grit and determination to win, even the most finely tuned athlete can fail to achieve their potential.
But it’s clear that harnessing the drive, tenacity, and stamina that motivates athletes to tap into their capacity to win also has positive benefits in the corporate world, too, offering business professionals the tools to help turn career aspirations into achievable goals.
Happily, the kind of mental toughness that has the power to be transformational isn’t an accident of birth or the reward for a hefty financial outlay. And it’s not about side-stepping catastrophe, either, but rather about seeing challenges as learning experiences. In short, cultivating mental strength simply requires a change in outlook.
Small businesses are the lifeblood of any economy, creating wealth and employment opportunities – and supporting economic growth at grass-roots level. This type of entrepreneurship has always been valued in the United States, where the founders of startups can aspire to become leaders of Fortune 500 companies if they hit on a successful niche.
But are small business owners being unfairly hampered by the raft of regulations introduced following the financial crisis of 2008? It’s an issue that’s hitting the headlines at the moment as President Trump reaffirms his pre-election promises to de-regulate the financial services industry.
What do Donald Trump and Johnny Depp have in common? Superficially speaking, not much. But recent events around the thorny issue of whether or not financial advisers should be required to put their clients’ interests before their own has placed POTUS and Hollywood star on opposite sides of one of the hottest discussions of the year so far.
The winds of change
On the face of it, the ideological and political differences between the outgoing Obama administration and the incoming Trump regime could not be greater. Barely a single policy is likely to remain unaffected, with everything from public spending to international relations predicted to shift into sharp reverse under the auspices of a maverick who’s made his mark by defying convention throughout the presidential campaign.
In the last months of 2016, the financial markets reacted to Trump’s unexpected victory via a textbook surge in stocks and government yields as well as a significant upshift in the value of the dollar following predictions of increased growth and higher levels of inflation on the wave of announcements regarding deregulation, tax reforms and infrastructure spending.
An upturn for the economy?
After a period of sluggish performance, the US economy may be set for an unexpected upturn. The incoming Republican administration seems determined to throw all its resources into boosting the economy which, together with the much-touted trade restrictions shoring up the price of imports, is almost certain to fuel inflation above the average 2.2% of Obama’s second term.
While under Barack Obama, labour regulation and environmental legislation expanded greatly – witness the scope of Obamacare, for instance – its subsequent contraction under Trump may well encourage businesses to start investing again.