US Stocks Bullish on President Trump’s Tax Reform Policy
Steve Forbes, Chairman/Editor-in-Chief of Forbes Media, is optimistic that stocks have room to reach new records as President Donald Trump pushes forward with his vows to cut taxes and regulations.
“Markets always try to anticipate the future. One of the reasons it had such a big surge since the election, especially small-cap stocks, is in anticipation of deregulation which the president started and I think he’s going to follow through on that,” Mr. Forbes said Thursday on TV.
The Dow Jones Industrial Average (DJIA) rose as much as 16% to record highs since Donald Trump’s election victory on 8 November, with banks like Goldman Sachs Group Inc. climbing 40% on the possibility of less onerous financial regulation.
The Russell 2000 index of small-cap companies climbed 19% by last week, but it has since settled back at levels 1st seen in early December.
“It’s going to take a lot of relentless work especially with Congress and these agencies, by gaining a good tax bill that’s the next big thing on the table and start to repair our broken healthcare system,” Mr. Forbes said. “You get that corporate tax rate from 35% down to 15%, that automatically raises your profits 20%.”
GOP lawmakers this week took steps to repeal and replace the Affordable Care Act (ACA), aka Barack Obamacare. After changes to healthcare, Republicans plan to turn to tax reform later in the year.
Mr. Forbes said President Trump appears committed to the growth message that guided his campaign, which included economic advisers like Larry Kudlow and Stephen Moore recommending tax reform to create better incentives for growth.
“People like Larry Kudlow will be weighing in through the public media or whatever so his advice will be on the table,” Mr. Forbes said. “The President is going to push this pro-growth agenda. If he pushes it, people working for him will fall in line. That’s the nice thing. You set the tone, they will follow.”
Thursday, the US major stock indexes finished at: DJIA +2.46 at 20858.19, NAS Comp +1.25 at 5838.81, S&P 500 +1.89 at 2364.85
Volume: Trade on the NYSE came in at heavy with 1.039-B/shares exchanged.
- NAS Comp+8.5% YTD
- S&P 500 +5.6% YTD
- DJIA +5.5% YTD
- Russell 2000 +0.2% YTD
|HeffX-LTN Analysis for DIA:||Overall||Short||Intermediate||Long|
|Bullish (0.36)||Bullish (0.35)||Neutral (0.23)||Very Bullish (0.50)|
|HeffX-LTN Analysis for SPY:||Overall||Short||Intermediate||Long|
|Bullish (0.37)||Bullish (0.41)||Bullish (0.25)||Bullish (0.46)|
|HeffX-LTN Analysis for QQQ:||Overall||Short||Intermediate||Long|
|Bullish (0.48)||Bullish (0.47)||Very Bullish (0.56)||Bullish (0.42)|
|HeffX-LTN Analysis for VXX:||Overall||Short||Intermediate||Long|
|Bearish (-0.36)||Neutral (-0.12)||Bearish (-0.46)||Very Bearish (-0.50)|
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