US investors believe passage of NAFTA will be good for the economy, reasoning that the US, with its superior industrial productivity and products, will reap the most economic benefits in a more open trading environment. The survey also found that Americans are optimistic about their future financial situation, but pessimistic about how they would handle an increase in interest rates. Inflation is the biggest concern because low inflation has kept bond yields low and boosted shares to record highs. A reverse trend could undermine vulnerable equity markets. Defeat would be bad for President Clinton, who has invested political capital in getting NAFTA through Congress. The outcome of the vote is too close to call.
US investors believe passage of NAFTA will be good for the economy, reasoning that the US, with its superior industrial productivity and products, will reap the most economic benefits in a more open trading environment. A NAFTA rejection would lead to greater protectionism and inflation and slower world economic growth. Inflation is the biggest concern because low inflation has kept bond yields low and boosted shares to record highs. A reverse trend could undermine vulnerable equity markets. Defeat would be bad for President Clinton, who has invested political capital in getting NAFTA through Congress. The outcome of the vote is too close to call.