http://profitabletradingtips.com/profitable-trading-tips/what-will-a-trump-presidency-do-to-stocks
What Will a Trump Presidency Do to Stocks?
The totally unexpected may indeed become possible. Real Estate developer and reality show host Donald Trump could end up being President of the United States. If that happens, what will a Trump presidency do to stocks? CNBC weighs in with a suggestion that stocks will rally if the Donald sits in the oval office.
donald trump is bound for the white house, and when he reaches the oval office, stocks will “go straight up,” said kevin o’leary, chairman of o’leary financial group.
“i think what we’re going to see happen – although it’s so remarkable and i’m not endorsing his candidacy – is trump is going to ride his way into the white house on a populist wave of anger at our government,” o’leary told cnbc’s “fast money: halftime report” on monday.
“he wants to solve the problems that we really have here in terms of straightening out the tax code, which i think is a big hold-back on these equity markets right now. it doesn’t allow our companies to compete,” he said.
the tax foundation concluded trump’s overall tax plan would “greatly increase the u.s. economy’s size in the long run,” but would also boost the government’s deficit by $10 trillion over the course of 10 years.
Their bottom line opinion is that Trump would work to make the tax code more favorable to business which would drive stocks up. But there are other opinions.
What History Tells Us about Elections and the Market
Kiplinger writes about how the presidential election will affect the stock market.
3. Real Estate developer and reality
show host Donald Trump could
end up being President of the
United States.
4. Before We Continue…
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6. CNBC weighs in with a suggestion
that stocks will rally if the
Donald sits in the oval office.
7. donald trump is bound for the
white house, and when he
reaches the oval office, stocks
will “go straight up,” said kevin
o’leary, chairman of o’leary
financial group.
8. “i think what we’re going to see
happen – although it’s so
remarkable and i’m not
endorsing his candidacy – is
trump is going to ride his way
into the white house on a
populist wave of anger at our
government,” o’leary told cnbc’s
“fast money: halftime report” on
monday.
9. “he wants to solve the problems
that we really have here in
terms of straightening out the
tax code, which i think is a big
hold-back on these equity
markets right now.
11. the tax foundation concluded
trump’s overall tax plan would
“greatly increase the u.s.
economy’s size in the long run,”
but would also boost the
government’s deficit by $10
trillion over the course of 10
years.
12. Their bottom line opinion is that
Trump would work to make the
tax code more favorable to
business which would drive
stocks up. But there are other
opinions.
15. the stock market has, for the
most part, ebbed and flowed
with the four-year election cycle
for the past 182 years.
16. since 1833, the dow jones
industrial average has gained an
average of 10.4% in the year
before a presidential election,
and nearly 6%, on average, in the
election year.
17. by contrast, the first and second
years of a president’s term see
average gains of 2.5% and 4.2%,
respectively.
18. a notable recent exception to
decent election-year returns:
2008, when the dow sank nearly
34%.
19. you may feel strongly about one
party or the other when it comes
to your politics, but when it
comes to your portfolio, it
doesn’t matter much which party
wins the white house.
20. The problem, of course is that
Trump is not really a Republican
or a Democrat but a maverick
who knows how to voice his
strong opinions effectively on
today’s media.
22. 24/7 wall street picks
which stocks could rise on a
Trump presidency.
23. we’ll start with the obvious one:
defense stocks. trump has
publicly stated his
administration would take a
strong militaristic approach to
what’s happening in the middle
east.
24. he’s also said he will deploy u.s.
forces in the south china sea to
help leverage the nation’s
bargaining position with china
and strengthen the u.s. armed
forces as a whole.
25. picking trade fights with china
over their currency is sure to
escalate military tensions, too.
26. the defense industry that fills
government contracts will
underpin this strengthening and,
just as in times of war, will draw
additional capital.
27. look for gains in stocks like
lockheed martin corp. (nyse:
lmt) and general dynamics corp.
(nyse: gd) on a trump election.
28. Other suggestions are gun
manufacturers who would benefit
from protection of second
amendment rights.
29. However, if a President Trump
were to start a trade war with
China many companies that
manufacture there would be hurt
but heavy equipment
manufactures like Deere and
Caterpillar would be helped!
30. On the positive side, Trump talks
about upgrading US
infrastructure which would again
help builders and heavy
equipment manufacturers.
