Market Optimism Soars with Pro-Business President
The stock market is poised for a significant boost under the new administration, thanks to its pro-business stance. According to renowned finance expert Jeremy Siegel, this presidency could be the most stock market-friendly in history.
A Historic Week for the Markets
Last week, the S&P 500 surged 4.66%, reaching unprecedented heights above 6,000. The Dow Jones Industrial Average also broke through the 44,000 mark, a new milestone. Investments that stand to benefit from the new administration’s policies saw remarkable gains. Tesla, backed by CEO Elon Musk, saw its shares skyrocket 29%, returning to a $1 trillion market cap. Bank stocks, such as JPMorgan Chase and Wells Fargo, also experienced significant rallies.
Tax Cuts and Deregulation
Siegel believes the corporate tax cuts introduced in 2017 will likely be extended, providing a major boost to the market. However, the expansion of these tax cuts may face more resistance. The president-elect’s commitment to deregulation is also expected to propel growth and benefit risk assets.
Caution on Trade Policy
While the market is optimistic, there are concerns about the president-elect’s trade policy. The proposed tariffs on trading partners could hinder growth and fuel inflationary pressures, which could lead to interest rate hikes by the Federal Reserve.
A New Era for the Stock Market
The market’s reaction to the election win suggests that investors are betting on the new administration’s promises of growth and prosperity. With the S&P 500 and Dow Jones Industrial Average reaching new heights, it’s clear that this presidency could have a profound impact on the stock market.
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