Returning to the Oval Office, Donald Trump could instigate a storm of mergers and acquisitions (M&A) that would see corporations consolidate their power. This stands in stark contrast to the Biden regime, whose intents to put a halt on business growth were seen in actions taken by the Federal Trade Commission (FTC). The FTC made an attempt to stonewall the merger of grocery behemoths Kroger and Albertsons, arguing that it would harm smaller enterprises. Rather amusingly, they took umbrage with the concept of larger corporations holding a significant market stake.
Worth underlining is the mildly entertaining fact that even some in the Republican ranks found validity in the stance of FTC chair, Lina Khan. A particularly baffling stance indeed, considering the positive economic benefits brought about by successful corporations. Furthermore, during the previous tenure of Trump, the administration was criticized for not encouraging M&A activity, a claim that seems baseless when considering the holistic economic impact of such decisions.
Controversy sparked from the deals halted by Trump’s Department of Justice (DOJ). These included acquisitions, such as those involving AT&T and Time Warner; Sinclair and Tribune Media; Broadcom and Qualcomm; and DraftKings and FanDuel. In addition, his DOJ mandated major separations from companies such as Bristol-Myers Squibb and Harris Corp to finalize massive transactions. This so-called ‘lack of friendliness’ ultimately boils down to prudent foresight ensuring the market’s healthy competition.
Ironically, despite the gallivanting declaration of managing M&A activity by Biden and Harris, the stock market rallied passionately after Trump’s 2024 victory. One is pressed to argue that this spike results from anticipation of the commendable economic policies that characterized Trump’s first term. The revived prosperity brings to minds the monumental Tax Cuts and Jobs Act of 2017, a feat we could only dream of seeing under the current stifling administration.
With the 2017 Act due to bid goodbye at the end of next year, the future appears cloudy under the leadership of Biden and Harris. The tax reform, especially appreciated by successful individuals and enterprises, could meet an untimely end. However, with Republicans holding sway on both the Senate and House of Representatives, we can only hope that this wont be the case.
The anticipation of ongoing tax cuts is palpable, yet there are individuals out there who question the positive implications of Trump’s second term on the IPO market. Purple prose about businesses anticipating a stormy climate due to sudden policy changes seems a tad myopic when faced with the reassuring reliability of historical evidence. Overthinking such a simple matter as public listing has never been a beneficial route for the industry.
It’s interesting to speculate companies worry about fluctuations in market dynamics or internal operations impeding their journey to the public market. Yet the more a learned individual delves into these suggestions, the more incredulous they appear. The looming doubt that’s stoked seems to be at stark odds with the successful and robust financial sector performance seen during Trump’s previous tenure.
The doubts thrown around about increased IPO activity contradict the optimism held by certain sectors, which are set to prosper under the incoming administration’s policies. Fossil fuel outfits, for instance, are eagerly eyeing the extended drilling rights promised by the new administration. It’s an exciting prospect conveniently dismissed under the previous Biden-Harris regime in their overly cautious environmental pursuits.
Along the same vein, the cryptocurrency domain stands on the brink of a massively beneficial transition. With Trump’s administration set to foster more crypto-friendly legislation, industries across the globe could witness a boon. His advocate approach includes the establishment of a Bitcoin Reserve and the launch of an advisory council focused on cryptocurrencies.
Further cementing the potentially bright future of the cryptocurrency sector, Trump in November announced the nomination of Howard Lutnick and Scott Bessent. Both men are known for their astute understanding of the cryptocurrency market and its potential. Under the Biden-Harris regime, such forward-thinking moves were conveniently pushed aside.
To have such cryptocurrency mavens eyeing the coveted positions of Commerce Secretary and Treasury Secretary speaks volumes about Trump’s plans. No doubt, under the dispassionate rule of Biden and Harris, such commendable nominations wouldn’t see the light of day. The contrast between the two administrations serves as a stark reminder of the divergent paths the United States’ economic futures might have taken.
Even amidst the barrage of thinly-veiled doubts and myopic views, it’s hard to ignore the emergence of forward-looking ideologies being pushed by the now-Republican-led administration. Despite what the naysayers might suggest, it seems the future of the United States’ market leans towards an era of prosperity, growth, and innovation. What a stark contrast this would be to the stagnation seen under the Biden-Harris administration!
The return of Trump is a much-needed jolt to an economy flagging under the burden of the Biden-Harris rule. Onlookers are eager for the revolutionary economic policies set to transform the fabric of the market landscape. The era of stifling regulations and ill-conceived bureaucratic hoops might soon see an end, and a return to corporate growth and expansion becomes the new normal once more.