Why Wall Street Still Not Taking Trump Seriously

Investors have bid stock prices up to historic highs this week, brushing off escalating threats from President-elect Donald Trump to disrupt global trade. Most analysts agree that a rupture between China and the United States, the world's two most important economies, could have serious consequences, including a recession. Few on Wall Street, however, believe Trump will deliver on his promises to radically alter U.S. trade relations. Instead, investors see those policies as "a risk case, not the baseline," said Joseph LaVorgna, the chief U.S. economist at Deutsche Bank.