US Markets

Trump policies like deregulation are 'low-hanging fruit picked a long time ago,' Chantico CEO says

Good things are coming for economy, markets: Retzler

President-elect Donald Trump's likely attempts at boosting U.S. growth through policies like deregulation and corporate tax cuts may not be as effective as the market rally seems to suggest, Chantico Global CEO Gina Sanchez told CNBC on Friday.

While apparently "business-friendly" initiatives could help smaller firms, companies already pay lower corporate taxes through deductions and credits than the official rate, so slashing taxes there could make very little difference in the status quo, Sanchez told "Squawk Box."

"A lot of that low-hanging fruit got picked a long time ago," Sanchez said. "I don't think you're going to get as much juice out of that playbook as people think we're going to get."

Sanchez said the postelection market rally reflects mostly the positive effects that could come out of a Trump presidency and is dangerously discounting the negatives.

"I think a lot of people are drinking a lot of Kool-Aid right now," she said.

Sanchez said the momentum in the markets will only go so far, and in the case of any hiccups in the new administration's transition, a pullback could materialize.

"I think the way that pullback gains momentum is if you see a number of stumbles in terms of the incoming administration ... getting the Cabinet approved and getting going. The process of getting these unknowns into becoming known, that's going to take months," she said.

However, there is something to be said for the unusually fast and furious rise, and Sanchez said that until policies are realized and implemented, markets could continue to climb provided no major mistakes are made by the Trump team.

"The only benefit ... is the fact that the economic momentum going into 2017 has so far been positive," Sanchez said.

"Expectations for earnings in 2017 are still in double-digit territory, and so we still have to contend with the realities of that in combination with a whole lot of unknowns right now about what policy really is going to turn out to be," she said.

Though Randy Anderson of Griffin Capital said he expects the strong market rally to continue well into 2017, he was concerned about expectations for economic growth over the next year, he told CNBC on Friday.

"At some point, there will be a pullback. If you look at the market today, consumption's strong, the consumer's spending money, unemployment's already at a pretty all-time low. You say, 'Well, how much can GDP really grow?'" Anderson, Griffin's chief economist, said on "Squawk Box."

Anderson added that he does expect faster GDP growth, is bullish on stocks and projects some inflation under a Trump administration in the new year, but that some GDP predictions are a bit too high.

"I think GDP's going to come in more in the 2.5 percent range rather than a 4 percent range because it's really tough to generate as much consumption growth as you could get," he said.

And when inflation starts to rise midyear, by Anderson's estimates, real estate and other tangible assets will begin to flourish, he said.

Anderson said the animal spirits fueling the rally will drive the market higher into 2017, but when Trump takes office and people wait for policies to come to fruition, the excitement will slow down.

"Then it's going to all come back to economic data, and the reality of earnings and where that market's going to be," the economist said.

And friction between Trump and the Federal Reserve won't help move things along either, Anderson said.

"We've got one foot on the gas in terms of fiscal policy, but we're also going to have one foot on the brakes in terms of monetary policy," he said, citing elevated labor costs and a higher cost of capital as reasons for remaining cautious and not inflating earnings expectations too much.