The death of repeal and replace, the Trump agenda, and stocks
There was no shortage of angst in the investment community that a Donald Trump victory in last year’s election would send shares down sharply, at least in the immediate aftermath of a Trump win.
In reality, just the opposite happened, with stocks surging in the wake of his surprise victory.
The pre-election-day conventional wisdom didn’t pan out.
Instead, investors quickly warmed to the idea that a Republican President and a Republican Congress would quickly enact a pro-business agenda that would fuel economic growth, and by extension, corporate profit growth.
It was an ambitious agenda that included a steep cut in corporate taxes, individual tax cuts, and tax reform, regulatory reform, and new outlays for infrastructure and national defense. (more…)