SMITHFIELD, RI - With global financial markets responding to the Presidential election, and investors anxiously speculating about the economic climate in 2017, Bryant Finance Professors Peter Nigro and David Louton have been in high demand for their financial markets expertise. Here is a round-up of the news stories where they've provided comments and perspective.
Money.U.S.News.com: A look at defense stocks under the new Administration
A Dec. 16 U.S. News and World Report article titled “Defense stocks: Not so safe with Donald Trump?” looked at the impact of the President-elect’s recent Tweets about Boeing and Lockheed Martin. "Dave Louton, a finance professor at Bryant University, believes that the defense industry will still make a pretty penny under President Trump," noted the article, with Louton adding, "Given the run-up that we have seen in their stock prices since the election, it may be time for a reset."
The Street.com: Fed's December interest rate hike priced into the markets
On TheStreet.com's live blog during the meeting of the Federal Reserve on Dec. 14, Professor Nigro weighed in on the impact of the Fed's rate increase, noting that “Markets have pretty much priced it in at this point.”
The Hill: Exploring the post-election market rally
In his Dec. 13 article titled "Irrational investors are fueling the Trump stock market rally” on TheHill.com, Professor Louton attempts to reconcile current market enthusiasm with the realities of the President-elect’s proposed policies. “Call it quantum politics if you like, but we seem to have gone through the looking glass and discovered that we like it there,” said Louton.
International Business Times: Fed moves affect homeowners, young people
“It’s going to be more expensive to buy a house, and it’s going to be more expensive for people thinking of moving up,” said Professor Nigro in the Dec. 13 International Business Timesarticle, "How Does the Fed Interest Rate Affect Other Things? Homeowners, Young People, Exporters Could Be Hurt By Wednesday Hike." “Banks are always quick to raise rates on debt,” he added.
Washington Examiner: Impact of President-elect's policies on interest rates
The Washington Examiner included comments from Professor Nigro and several Federal Reserve officials in the Dec. 13 article, “How the Fed will react to Trump's victory.” Nigro noted that “there are so many unknowns” about what the President-elect will say and do, and he believes that Trump's proposed policies will be a big topic for the Fed meeting this week.
TheStreet.com: Interest rates and home buying outlook
"I think the Fed really wants to be proactive in popping any potential bubbles going forward," said Professor Nigro in the Dec. 12 article on TheStreet.com focused on trading ahead of the Dec. 13-14 Fed meeting. He added "that if market conditions persists he expects the Fed to raise interest rates two or three time during 2017."
In the article headlined “Interest Rates Likely to Rise Under Trump, Could Affect Confidence of Homebuyers” on Nov. 11, Professor Nigro projected that housing demand will likely remain flat with a rise in interest rates as many first-time homebuyers will be saddled with more debt. He added that “interest rates will also be affected by the size of the fiscal stimulus since additional infrastructure spending and associated debt could push interest rates up through the issuance of more government debt."
Money.U.S.News.com: 2017 Pinterest IPO outlook and Roth IRA recharacterizations
On Money.USNews.com Nov. 21, Professor Louton joined other financial experts for a look ahead at “The 10 most anticipated IPOs of 2017.” Here’s his take on market conditions for Pinterest: "Because of Pinterest's ability to touch an almost unlimited spectrum of special interest groups, their revenue potential is very strong.”
Professor Nigro was also quoted on Money.USNews.com Nov. 21 in an article headlined “How to Prepare for a Roth Recharacterization.” "If your Roth conversion incurred a substantial drop in value, you may want to recharacterize and undo the Roth conversion," said Nigro. "Alternatively, if the funds grew, you will want to keep the conversion."
Forbes.com: Investment ideas from stock market pros
In the Sept. 29 article on Forbes.com “How to Invest in Q4 2016: The Best Ideas from 5 Stock Market Pros,” Professor Louton discussed the role of fiscal policy in “bringing the recovery in for a solid landing.” “The big winners will be companies operating in areas that have not traditionally been seen as infrastructure but are destined to be seen as such going forward,” said Louton. “There will be big rewards for investors who spot these opportunities early."