With the S&P 500 up about 7% and the Dow up almost 10% in 2 months, the price increases have paused as the market takes stock and awaits earnings season and the inaugeration of Mr Trump.
Expectations have grown and with that the possibility of disappointment has increased, but as long as earnings grow by a few percent then the market will probably be satisfied. More critical is Mr Trumps ability to deliver something on his promises of change in the first 100 days. The market is expecting tax reductions, reduced regulation and economic growth (it is also expecting a softening on trade war and corporate bashing). We should get some detail soon on what Mr Trump's agenda is. If its pro-business and in line with expectations then, with Republican majorities in Congress, Mr Trump should be able to deliver and there should be further gains. But with little in the campaign and first months of office being predictable we will have to wait and see.
Submitted January 10, 2017 at 04:13PM by InterestingNews1 http://ift.tt/2j5xyhR
No comments:
Post a Comment