Brian Singer, head of William Blair’s Dynamic Allocation Strategies team, told U.K.’s Investment Week that President-Elect Donald Trump’s infrastructure policy would be difficult to achieve because of U.S. regulations and government structure.
“The market is too euphoric about what is going to happen with Trump’s infrastructure policy,” Singer said in the interview. “There is nothing ‘shovel-ready’ out there and an increase in infrastructure will take a while to implement.”
He explains how U.S. legal and regulatory review processes are lengthy and restrict presidents from having the luxury to take initiative for these types of changes.
The House of Representatives is likely to create additional hurdles, said Singer. “[They] love infrastructure spending, but they will fight about which state it occurs in and this is not something that is not resolved quickly.”
As far as taxation and regulation, Singer believes Trump can make some progress. Simplifying income tax rules and repatriating money held outside the U.S. may help support economic growth, and he expects the paring back of the Affordable Care Act and Dodd-Frank.