The GOP may be feuding over whether to embrace Donald Trump, but some on Wall Street appear to be warming to the presumptive Republican nominee.
And they have a message for markets: A Trump presidency could be a catalyst for big gains. Their remarks were a departure from a separate group of investors, who weeks ago panned a potential Trump administration.
It's a long way until the November election, and a victory by the real estate mogul is far from assured. The Real Clear Politics average of general election polls shows Trump trailing presumptive Democratic nominee Hillary Clinton, as well as challenger Bernie Sanders by a wide margin. That said, some Wall Street bulls are envisioning how a Trump win might be beneficial for stocks.
"A Trump presidency could add up to a positive for equities," Tom Lee, Fundstrat Global Advisors founder, told CNBC's"Fast Money" in an interview. Lee argued that Trump won't tolerate currency manipulation, that he'll be savvy when it comes to fiscal policy, and that he will establish a pro-business environment.
"I think Trump's approach to trade could reduce fears among business that their profits will be heavily taxed. Based on this, I think he could surprise to the upside for equities," Lee added.
Trump explained on CNBC's "Squawk Box" this week that the U.S. has to renegotiate its trade deals, and called them "disastrous. We used people who are political hacks to make deals with China, to make deals with Japan and to make deals with Mexico."
The Trans-Pacific Partnership was championed by President Obama before being signed by 12 nations, including Japan and Mexico, with the goal of promoting global trade through the elimination of trade tariffs. Trump has called the agreement an attack on American businesses, arguing it doesn't do anything to address currency manipulation and would allow foreign competitors to dump cheaply-priced goods in U.S. markets, at a cost to American businesses.