President-elect Donald Trump will have a difficult time getting Congress to agree on his policies in infrastructure and defense that call for fiscal spending, Morgan Stanley's Andy Chase said Thursday.
Chase, a private wealth advisor with Morgan Stanley and Barron's top-rated financial advisor, told CNBC's "Fast Money Halftime Report" that he preferred stocks that would benefit from Trump's deregulation proposals to those that would require a lot of money to pull off.
"I'm kind of in favor of these industries that benefit from less regulation," Chase said, referring specifically to banks and pharmaceuticals, whose shares have been much cheaper than usual since Trump's election.
"I'm a little less keen on chasing the infrastructure and the defense, things that require spending money," the financial advisor said. "It's not like he won in a landslide. I think he's going to have a battle on his hands getting Congress to agree to spend money."
Trump has not gone into great detail on how he would implement these policies, but the president-elect has said he intends to turn to private financing to fund his reconstruction projects.
Chase said he has seen an overall lift in the market after a long period of stagnation when investors were extremely hesitant to invest.
"I've never seen so much pessimism out there," he said of the weeks before the election.
Still, Chase is "relatively bullish" on the U.S. market. And while he predicts the Federal Reserve will raise rates in December, he would not see that as the beginning of a trend.
"The thing I think people keep missing is the fact that … the reality is rates are going to stay down, in my opinion, for a long, long time," Chase said. "The notion that the Fed is going to raise and continue to raise rates … is a little bit off-base, regardless of who's in office."