Record high dealmaking

Trade tension has been a significant concern in the global economy as well as the financial market. However, several facts show that the current trade tension has not been affecting the US financial market that the stock market is at a historical peak and dealmaking (merge and acquisition) has hit a record high of $3.2 trillions. These two facts do not only show investors’ confidence in the US financial market, but also shows the boardroom confidence in the US businesses.

Boardroom confidence can be split into two parts. On one hand, the US businesses have had so many M&A activities because they believe in the future US economic performance, so they want to expand their businesses in order to get the most of a good period. On the other hand, the US businesses believe that it is the time for them to grow bigger to beat other countries’ competitors. Such confidence in beating other rivals is based on the confidence in the US economy as well as the US foreign policy. The aggressive US foreign policy helps the US businesses to gain more competitiveness in the global market. And the good performance of the US economy helps the US businesses to generate sufficient cash to compensate the cash loss from their merge and acquisition activities.

Overall the US businesses are confidence in the US economy as well as the strength of the US politics; furthermore, some of the businesses may even believe in the trade tension will work in favour of the US businesses.