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Trump isn’t killing the bull market. Here’s why

The recent rise to power of Donald Trump in the United States has caused many to fear for the economy’s future. After all, Mr. Trump has made it known

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The recent rise to power of Donald Trump in the United States has caused many to fear for the economy’s future. After all, Mr. Trump has made it known that he does not agree with the current prevailing view of global economic growth, nor the policies issued by his predecessors. Despite many people’s worries that a Trump presidency could be the death of the current bull market, this is most likely not the case. Here’s why.

First and foremost, the U.S. stock market is not necessarily a reflection of the President’s attitudes or policies. In fact, the markets often react in opposite ways to what many observers expect – a phenomenon famously referred to as the “Trump rally”. Thus, if and when Trump does institute any large-scale economic policies, such movements could lead to counterbalancing effects in the market.

Secondly, Trump’s economic policies are unlikely to directly affect the markets in any meaningful way. While policy changes can and do have an overall impact on the economy and the markets, they do not always do so in the short-term. For instance, the effects of the 2017 Tax Cuts and Jobs Act are still being felt and assimilated into the overall economy, and have not yet significantly altered the market in any clear way.

Lastly, the markets are largely being driven by investor confidence, both domestic and international. Trump’s efforts to develop stronger relations with foreign partners have lead to an increasing degree of investment in U.S. markets, which has in turn bolstered the market overall. In particular, foreign investors are looking to take advantage of the new high-tech fields that are booming in the United States, which is causing further investment, growth, and overall stability in the markets.

In conclusion, Donald Trump’s election does not necessitate that the bull market will end anytime soon. Although some fear his economic policies, the stock markets are largely driven by investor confidence, as well as the overall economic climate. As long as economic growth and investment remains strong, it is likely that the current bull market will continue.

Trump isn’t Killing the Bull Market: Here’s Why

Despite much uncertainty surrounding the Trump presidency, the stock market has been on a tear since his election. Many market analysts have attributed this to investor optimism, and there are indeed several good reasons why Trump isn’t killing the bull market.

Higher corporate profits & Low Unemployment

One of the key drivers of the stock market rally is that corporate earnings have grown at an astonishing rate. The combination of a low unemployment rate and wages rising faster than expected is increasing consumer spending. This has encouraged investment in corporate America and led to higher corporate profits.

Historically Low Interest Rates

The Trump administration has also benefited from historically low interest rates, which has encouraged investment and helped boost stocks. The Federal Reserve has indicated that it plans to keep rates low for the foreseeable future, which is helping to fuel the stock market rally.

Tax Reform

The Trump administration is also pushing for tax reform, which would give corporations and individuals more incentive to invest in stocks. This could potentially lead to even higher levels of corporate earnings in the future, which could help spur further stock market gains.

Fiscal Stimulus

The Trump administration is also proposing an increased level of fiscal stimulus, which could help spur economic growth, boost employment and wages, and increase demand for goods and services – all of which would likely have a positive impact on the stock market rally.

Overall, despite all the turbulence caused by the Trump administration, there are several good reasons why the bull market is still going strong. Corporate earnings are growing, interest rates remain at historically low levels, and there is the potential for tax reform and fiscal stimulus. All of these factors, coupled with investor optimism, suggest that the bull market is here to stay for the foreseeable future.

Conclusion

While there will likely be some market volatility in the near term, the current bull market appears to still be on a solid footing. With corporate earnings continuing to grow, low interest rates and the potential for tax reform and fiscal stimulus, it seems that Trump isn’t killing the bull market just yet.

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