Economist Daraius Irani on stock market’s reaction to election

WELL IT’S WELL KNOWN THAT THE ECONOMY REALLY IMPACTED VOTERS DECISION MAKING WHEN IT CAME TO CHOOSING A PRESIDENT. WE SAW WALL STREET REACT POSITIVELY TO FORMER PRESIDENT TRUMP’S VICTORY TODAY. FINANCIAL EXPERT DARIUS IRANI FROM TOWSON UNIVERSITY IS JOINING US NOW LIVE. THANK YOU, MR. IRANI, FOR BEING WITH US. THANK YOU FOR HAVING ME. WE UNDERSTAND. WHAT IS YOUR TAKEAWAY FROM TODAY’S STOCK MARKET UPTICK? WHAT’S YOUR TAKEAWAY FROM THAT? WELL, OBVIOUSLY THE BUSINESS COMMUNITY VIS A VIS THE CORPORATIONS FEEL VERY STRONGLY ABOUT THE TRUMP VICTORY. THEY VIEW THE OPPORTUNITY THAT THEY’LL LIKELY BE SOME TAX CUTS WHICH WILL IMPACT THEIR BOTTOM LINE. AND THEREFORE THEIR STOCK PRICES SHOULD INCREASE. GOING FORWARD. AND, YOU KNOW, OBVIOUSLY, PRESIDENT TRUMP’S ECONOMIC AGENDA IS QUITE DIFFERENT FROM PRESIDENT BIDEN’S. WHAT CAN AMERICANS EXPECT TO SEE CHANGE QUICKLY WHEN PRESIDENT TRUMP TAKES OFFICE? WELL, HE’S SORT OF ANNOUNCED ON THE CAMPAIGN TRAIL THAT HE WOULD IMPOSE TARIFFS. WE WILL LIKELY SEE A REIMPOSITION OF MORE TARIFFS, WHICH COULD HAVE AN IMPACT ON HOUSEHOLD GOODS AND SERVICES. EVERYTHING FROM YOUR IMPORTED AUTOMOBILES TO EVEN DOMESTICALLY PRODUCED AUTOMOBILES, WHICH USE IMPORTED PARTS IN THEIR FINAL PRODUCTION TO PERHAPS EVEN TRADE WAR. SO PERHAPS FARMERS WILL SEE THAT THEY CAN NO LONGER SELL THEIR SOY OR CORN TO CHINA, AS THEY MAY HAVE PREVENTATIVE TARIFFS IN PLACE. SO I BELIEVE HE DID THIS IN HIS FIRST TERM. AND WE DID SEE THERE WERE SOME INCREASES IN SOME PRICES. BUT WE ALSO SAW THAT FARMERS PRIMARILY LOST A LOT OF THEIR AGRICULTURAL MARKETS. WELL OBVIOUSLY YOU TALKED TO TOUCHED A LITTLE BIT ON THIS ALREADY. WE SEE THE CHANGES ALREADY. THIS MORNING. WHAT WHAT OTHER LONG TERM CHANGES ARE YOU LOOKING AT THAT THE AMERICAN PUBLIC SHOULD BE LOOKING AT AS WELL. SO ON THE CAMPAIGN TRAIL, PRESIDENT TRUMP DID ANNOUNCE THAT HE WOULD LIKE TO DO SOME DEPORTATIONS OR EVEN SORT OF MINIMIZE THE FLOW OF UNDOCUMENTED INDIVIDUALS INTO THE INTO THE US. THAT COULD HAVE A SIGNIFICANT IMPACT ON OUR LABOR FORCE. RIGHT NOW, IN MARYLAND, 20% OF OUR WORKFORCE IS IMMIGRANTS. OFTENTIMES, THEY TAKE THE DIRTY, DULL, AND DANGEROUS JOBS. SO IF INDEED WE SEE A SLOWDOWN OR EVEN A REDUCTION IN THOSE INDIVIDUALS, IT COULD REALLY AFFECT MANY BUSINESSES IN THE IN THE AREA. AS WELL AS MANY BUSINESSES ACROSS THE ACROSS THE COUNTRY. SO THAT’S PROBABLY YOU MAY BEGIN TO SEE THAT IF HE DOES, IF HE’S SUCCESSFUL AT HIS PROGRAMS AGAIN TARIFFS WE MIGHT SEE SOME BUMP UP IN PRICES. BUT WE ALSO MIGHT SEE SOME SLOWDOWN IN TRADE, ESPECIALLY IN AGRICULTURAL GOODS. ALL RIGHT. AND YOU KNOW THE STOCK MARKET’S UP TODAY IN RESPONSE TO FORMER PRESIDENT TRUMP’S WIN. SOME PEOPLE YOU KNOW WILL MAKE EMOTIONAL DECISIONS TO TRY TO JUMP IN AND CATCH UP WITH THE MARKET. I KNOW THAT’S NOT REALLY THE ADVICE FROM ECONOMIC EXPERTS. DO YOU HAVE ANY ADVICE FOR REGULAR, EVERYDAY CONSUMERS? I MEAN, WHAT SHOULD THEY BE DOING? WHAT SHOULD THEY BE THINKING ABOUT AHEAD AS AS THIS TERM IS COMING UP? WELL, I MEAN, THIS IS THIS IS A DIFFICULT. RIGHT. SO, YOU KNOW, OVER HALF THE COUNTRY STRONGLY SUPPORTED HIM. SO THEY WILL CONTINUE TO SUPPORT HIM. AND AGAIN, ONE SHOULDN’T REALLY BE MAKING TOO MANY FINANCIAL DECISIONS OR SHORT TERM DECISIONS BASED UPON THE PRESIDENCY. AGAIN, YOU KNOW, AS WE SAW IN THE PRESIDENT TRUMP’S LAST TERM, WE HAD A COVID OUTBREAK, WHICH WREAKED HAVOC ON THE ECONOMY. SO AGAIN, YOU KNOW, THE PRESIDENCY IS PROBABLY NOT A GOOD BAROMETER OF THE FINANCIAL HEALTH OF THE COUNTRY. BUT THAT BEING SAID, I BELIEVE THAT THE ELECTION OF A REPUBLICAN PRESIDENT PROBABLY ENCOURAGED THE THE STOCK MARKET TO TO RISE, GIVEN THE FACT THAT IT’S PROBABLY GOING TO BE SOME TAX CUTS DOWN THE ROAD FOR MANY OF THESE CORPORATIONS. ALL RIGHT. DARIUS IRANI, THANK YOU SO MUCH FOR JOINING US AND HELPING US TO SORT THROUGH SOME OF THOSE ECON