Wall Street is typically wary of government involvement in business. But the Trump administration’s promise of tax reform has some investors clamoring for more progress, said Divine Capital’s CEO on Monday.
“In Washington, we continue to just be all eyes on the soap opera,” CEO Danielle Hughes said on CNBC’s “Closing Bell.”
“And usually we like Washington to do absolutely nothing, and Wall Street would cheer this on full boat,” Hughes said, “but we want to see what Washington has to do with some taxes and rollbacks.”
Hughes said the “listlessness” of Washington and whispers of the bull market reaching its peak “makes a lot of people very nervous.”
“It’s been so discordant for so long,” she said. Hughes cited the record levels of credit card debt accumulating nationally, while MasterCard‘s stock rose nearly 28 percent in 2017.
“Whatever we think is going to happen, it’s not going to be that,” she said.
To be sure, not all investors have abandoned their animal spirits. “We have a lot to gain on the international equities front compared to the United States,” wealth expert Steven Wieting of Citi Private Bank said on “Closing Bell.”
To Hughes, though, something eventually has to give way in the market’s counterintuitive rally. “Hopefully not on the political front or the war front,” she said, “but that’s also on the table.”