Stock market gains continue to be fueled by optimism about the Trump administration and optimism about its economic policies, as investors continue to see the market as a safe haven from the potential economic fallout of a Trump presidency.
In a market that has been in a bear market for years, investors are optimistic that President-elect Donald Trump will make good on his campaign promises and push forward with policies that will help the economy.
Trump has promised to repeal and replace Obamacare and to eliminate a number of regulations, including the Dodd-Frank financial regulation act.
Trump is expected to announce a number more policies that are expected to be a boon to the economy, including tax reform and deregulation.
The market has also been benefiting from the economic policies of former President Barack Obama.
In addition to repealing and replacing Obamacare, Trump is also expected to move to cut taxes on the wealthy and corporations.
Trump’s economic policies have helped lift stock prices, which have gained more than 500% since the election.
However, some market analysts are concerned that Trump could be a drag on stock prices.
“I think a lot of investors are starting to question the long-term prospects of stock markets and the broader economy in general,” says David Siegel, chief market strategist at The Motley Fool.
“It’s hard to see a sustained rebound in stocks going forward.
This is a time of great uncertainty and uncertainty in many markets, and it is hard to have a sustained economic recovery if you’re not seeing a sustained increase in job creation.”
Some analysts have said that Trump’s policies may put the U.S. economy at risk.
“If he’s in charge of a federal agency that is tasked with overseeing the economy and managing the financial markets, then the president-elect could be putting his own economic interests above the best interests of the American people,” says Paul Romer, chief investment officer at Sallie Mae, a brokerage that advises many large institutional investors.
“In this case, I think investors are more concerned about the stock market than they are about Trump.”
Trump has said that he would cut taxes and make the wealthy pay more in taxes, which would help the American economy.
But his proposed budget cuts and other policies that could hurt the economy could also be hurting stock prices and the economy as a whole.
“People may see this as a sign of how bad things are going to get for the economy if the Trump presidency is successful, so I think this is a positive,” Romer says.
Investors also may see the stock markets as a way to get exposure to the new administration and the upcoming tax reform bill that could boost their investments.
“The market has been very much underperforming for some time now and I think people are going back to the markets in anticipation of the tax-reform legislation,” Siegel says.
“Investors are starting back up again and are looking for an opportunity to be part of the recovery.”