Trump risks ahead - Nomura

Analysts at Nomura explained that the the emergence of legal cases against Donald Trump on conflicts of interest could be one important source of risk for markets.

Key Quotes:

"This could even emerge before he takes office in January next year. The other risk is that the existing planned fiscal policy of Congress (ie, Paul Ryan’s budget) could end up being the most likely one implemented. This suggests that tax cuts, rather than infrastructure spending, could form the main thrust of policy. This should still support higher yields and a stronger dollar, but it would not support markets that have priced a surge in infrastructure spending. These markets include US capital goods and transportation stocks and industrial metals, whose prices have risen sharply."