2016 is certainly ending with a bang as investors have begun thinking about the potential impact the Trump administration and a Republican Congress could have on the U.S. economy and markets. In the latest Reading The Markets With Mike and Jane video, we talk about some of these likely changes and when the impacts of these changes might begin to cycle through the equity markets. Tax reform will likely create some of the biggest impacts on equity markets, as a reduced corporate tax rate could help drive profit margins and help companies to reinvest back into their enterprises.
Key Takeaways:
- 2016 is certainly ending with a bang as investors have begun thinking about the potential impact the Trump administration and a Republican Congress could have on the U.S. economy and markets.
- Tax reform will likely create some of the biggest impacts on equity markets, as a reduced corporate tax rate could help drive profit margins and help companies to reinvest back into their enterprises.
- Additionally, deregulation could be a major driver for economic growth as businesses could be able to cut through red tape at a much quicker pace.
“The S&P 500 has rallied nearly 200 points since the beginning of November. That is a return of nearly 10% in a short period of time. Tax reform will likely create some of the biggest impacts on equity markets, as a reduced corporate tax rate could help drive profit margins and help companies to reinvest back into their enterprises.”
http://seekingalpha.com/article/4032876-will-new-fiscal-policy-impact-stock-market-2017
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