The Trump Bump: Caused by Political Policies or Market Fundamentals?Submitted by Reby Advisors on November 8th, 2017
In an earlier blog post, we shared a video clip from THE TRUMP ECONOMY and YOU event on October 25th featuring investment research and risk management specialist John Ross explaining the tax reform plan proposed by the Trump Administration. He discussed key potential changes to the tax code including:
- Cutting state and local tax deductions
- Eliminating, in part or in whole, mortgage interest deductions and personal exceptions
- Reducing the top marginal tax rate
- Reducing the number of tax brackets to simplify the tax code
- Increasing the standard deduction for individuals
If you missed that video clip or would like to watch it again, follow this link here: Video: Impact of Tax Cuts on the Economy, National Debt, and Markets.
The video clip above is a continuation of that discussion. Ross explains that these expected tax cuts are already factored into asset prices; expected policy changes within the next 12 months are part of the "Trump Bump" that we've heard of and experienced as part of this bull market that we're in.
It's also worth noting that current market fundamentals and global economic strength provide a solid foundation for the Trump Bump. Of course, there is no way of knowing how well or how poorly the economy might be doing if the election results or political events of the past year had unfolded differently.
As Bob Reby has said many times, Reby Advisors has never advocated making investment decisions based on the 24-hour news cycle or even political events.
If you would like to discuss your investment strategy with a financial advisor from Reby Advisors, please call (203) 790-4949.
To watch John Ross's full 60-minute presentation, the video is available on our Youtube channel: THE TRUMP ECONOMY and YOU.