The real estate investor proposes labeling China a currency manipulator and ending what he calls China's illegal export subsidies and theft of U.S. intellectual property. He also wants to penalize companies who move jobs from the U.S. to Mexico by hitting them with high tariffs if they want to export back to the U.S., as well as build a wall at the Mexican border to prevent the flow of illegal immigrants.
"In areas of trade policy and foreign affairs lies the greatest uncertainty," Kass said. "Trump is not likely to be market-friendly in any of these policy areas."
In response, Trump's spokeswoman Hope Hicks said in an email to Reuters that the same crowd criticizing the Republican Party's top candidate had been responsible for causing the last worldwide recession and economic meltdown in 2007-2008.
"They have zero credibility," said Hicks. "Mr. Trump will restore confidence to the global markets by ending runaway spending and borrowing, restoring trade balance and fairness, and bringing wealth to America's middle class."
Carried Interest
Investors had, for some time, been concerned about the strength of Vermont Senator Bernie Sanders' insurgent campaign for the Democratic nomination against former Secretary of State Clinton, given he declares himself to be a democratic socialist and has said Wall Street's business model is fraudulent. With recent losses to Clinton in Democratic contests in South Carolina and Nevada, he is now seen as less likely to win the nomination.
Trump's plans include ideas that traditionally come from Republican candidates, such as lowering the corporate tax rate, simplifying the tax code, and as his web site puts it, cutting the deficit through "eliminating waste, fraud and abuse" and "growing the economy to increase tax revenues."
"I think markets will like Trump on the taxes issue since he favors lower rates and a permanent change in repatriation rules," said David Kotok, chairman and chief investment officer at Cumberland Advisors in Sarasota, Florida, which manages $2 billion in assets.
Still, financial advisers say that Trump's plans to do away with the so-called carried interest tax loophole - which gives hedge fund and private equity managers preferential tax treatment on much of their income - would prompt more selling if he begins to climb in national polls against Clinton.
Jeffrey Gundlach, the co-founder and CEO of bond investing and trading powerhouse DoubleLine Capital, said that Trump has a history of being "comfortable with a lot of debt and leverage," and that won't impede him from spending heavily. He said he believes Trump's pledge to spend heavily on the military makes defense stocks a good investment play.