Trump leaves some on Wall Street wary and confused
By Rodrigo Campos
NEW YORK, July 21 (Reuters) - Donald Trump has said a lot of things that, were he a sitting U.S. president instead of a candidate for the job, could be expected to roil financial markets.
If investors were taking the Republican presidential nominee at his word, they would be selling shares of Apple Inc, Mondelez International Inc and Ford Motor Co, and cashing out of Mexican equities - all targets of Trump threats of boycotts, barrier walls or import taxes. Investors betting on a Trump presidency would be buying shares of U.S. companies that dealt exclusively with domestic customers and suppliers.
Yet the Trump trade is not much in evidence on Wall Street, where some market strategists and investors told Reuters they find it difficult to position their portfolios for his possible presidency, in part because many of his proposals are contradictory or lack specific implementation details.
Should Trump win the Nov. 8 election, some investors said, it is not clear how the New York businessman could push through policies that clash with mainstream Republican party views on free trade and low taxes.
"The investment community in particular is having trouble figuring out what (Trump) is about," said Bruce McCain, chief investment strategist at Key Private Bank in Cleveland.
"They are not taking individual items as seriously as they would with other candidates," he said.
Traders said they will be watching Trump's speech at the Republican convention on Thursday night for signs of how he would address business and tax issues, though they expect scant detail.
The Trump campaign did not respond to calls and emails requesting comment on how investment strategists viewed his policies. Continuación...