US Markets

One trade war and Donald Trump's economy is dead, market expert says

Closing Bell Exchange: Is Trump rally sustainable?

While President-elect Donald Trump is promising to revitalize the economic growth, market watcher Evan Newmark told CNBC on Friday he believes the economy can easily be derailed.

That's because he doesn't see where the growth will come from other than inflation and some element of global trade.

"One trade war and Trump's economy is dead, dead in the water," the private investor and CNBC contributor told CNBC's "Closing Bell."

During the campaign, Trump promised to end what he called unfair trade practices.

"Trade reform and the negotiation of great trade deals is the quickest way to bring our jobs back to our country," Trump said at a Pennsylvania rally in June. "A Trump administration will change our failed trade policies, and I mean quickly."

Donald Trump
Mandel Ngan | AFP | Getty Images

Newmark is also bearish on the prospects for the bond market.

"Donald Trump, regardless of the economy, is bad for bonds," he said. "Donald Trump is inheriting an economy that is 2.5 percent growth, 4.9 percent unemployment. For things to get better for him, the economy, there has to be inflation and wage growth."

"Fast Money" trader Brian Kelly, on the other hand, thinks the bond sell-off is probably over for the short term. He also believes the postelection stock rally is more about a Republican sweep than just a Donald Trump victory.

"U.S. assets are going to do well," he told "Closing Bell."

"There is going to be repatriation of cash from overseas into the U.S. Even if we don't have a good economy, corporations are going to buy back stock, pay dividends."

Joe Tanious, investment strategist at Bessemer Trust, thinks that Trump's various agendas have to be split into "likely to happen" and "the possibilities."

For example, immigration and trade policy are possibly happening, and it is more likely there will be tax reform and infrastructure spending.

"It's going to be supportive to growth, supportive to risk assets. And that's part of what markets have been reacting to this week," Tanious told "Closing Bell."

— CNBC's John Schoen contributed to this report.