Last year, except for Great Britain’s vote to leave the European Union, which pummeled global markets for two days, politics had little effect on stocks until around Labor Day. So, this year, what the new president and Congress do will determine whether the Trump rally continues. Because labor productivity hasn’t been growing much, and there’s a little slack in the labor market. The first year of the Trump administration will see Congress repeal but not replace Obamacare, work on tax reform and clear several Cabinet nominees after spirited fights by Senate Democrats.
Key Takeaways:
- Although Republicans swept the White House and the Congress in last year’s election, politics and policy will likely dominate 2017
- Markets really took off only after the unlikely election of Donald J. Trump as Wall Street reversed itself and realized that though it didn’t like his temperament, his policies and appointments would be damn good for business.
- So, this year, what the new president and Congress do will determine whether the Trump rally continues.
“A decent economy, positive earnings growth and pro-business moves by the Trump administration should keep stocks moving higher.”
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