It would be reassuring if Donald Trump’s objective really is to drive up the US equity market

The theory that Trump’s real objective is to drive up the US equity market is credible. It would explain: The expansionary fiscal policy, so as to prolong growth; The pressure on the Federal Reserve to not raise its interest rates; The pressure on other countries (Europe, China) for them to drive up the exchange rate of their currencies; The reduction in the corporate tax burden and the incentives to repatriate earnings. If this theory is right, then we can be reassured because: Trump sees that tariffs and trade wars drive down share prices by creating uncertainty, instead of driving them up by protecting US industry; Trump certainly understands that a serious geopolitical crisis (in the Middle East, with China, Russia, etc.) would cause share prices to fall .