The stock market has finally calmed down as Trump begins his new role as President of the United States. Trump said that all decisions in office would be for Americans and Americans only. Earnings growth is expected to be a lot better in 2017 than it was in 2016. It is unclear how everything will play out. However, good companies are still doing good and politics cannot have influence over everything.
Key Takeaways:
- Stocks soared to record highs in the six weeks after Trump’s election Nov. 8, with the Dow trading less than one point from the 20,000-point milestone on Jan. 6.
- But the “Trump rally” then ran out of steam as initial elation over his blueprint for business-friendly policies began fading, and investors took profits on their post-election gains.
- Even so, stocks remain near record levels. And now that Trump is in the White House, the stock market is at a crossroads as investors mainly focus on three things: early concrete steps Trump takes on taxes, trade, fiscal stimulus and other economic matters; the trend of inflation and interest rates; and the level of quarterly profits being reported by corporate America.
“Analysts’ earnings estimates bode well for stocks to further extend last year’s solid gains as well as the overall bull market in share prices that’s now lasted for several years.”
http://www.latimes.com/business/la-fi-trump-markets-20170120-story.html
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