Donald Trump cannot ignore equity wealth effects in the United States

Equity wealth effects are strong in the United States, which is to a large extent explained by the weight of equities in pension systems, household wealth and corporate financing. A fall in the equity market in the United States therefore leads to a marked rise in the household savings rate and to a sharp fall in corporate investment. So Donald Trump cannot accept a fall in the US equity market that could jeopardise growth. This is quite reassuring, as we can probably rule out a war or a trade war .