ANALYSIS: Trump’s Tax Cuts Will Drive MAJOR Stock Market Boom!

ANALYSIS: Trump’s Tax Cuts Will Drive MAJOR Stock Market Boom!

Under Obama, the economy in the United States has plummeted into a recession that has shown no signs of abating. But now that we have a new president taking office next month, things are beginning to look up. Even Standard & Poors thinks so: they’re estimating that Trump’s tax cuts could deliver a huge boost to the global marketplace.


On Thursday, S&P Global Market Intelligence released the data from a recent analysis they performed. And they estimate that Trump’s plan to slash the United States tax rate — the highest in the world — could boost the market by 11%.

Trump has said that he plans to cut the corporate tax rate from 35% to 15%. “The implications for stock market pricing are potentially dramatic,” S&P strategists said. S&P 500 earnings expect a growth of 11.8 percent, or $131 per share, in 2017. They estimate that every percentage point cut off of the corporate tax rate would add $1.31 in potential earnings.


It isn’t just S&P analysts that are optimistic. Goldman Sachs is also positive about the outlook for 2017 now that Trump will be taking office. Already, the stock market has improved by 4.7% since election day, even though Trump hasn’t been sworn in yet. But clearly, corporate tax reform is something S&P is on board with.

“We only mean to illustrate the potential significance that the discussion surrounding corporate tax reform could have on investor psychology and the level of ‘animal spirits’ within the broad economy and financial markets generally,” the S&P said. “We now await indications of how quickly the details of any forthcoming tax reform proposal can come together and how quickly and efficiently Congress can convert the proposals into legislation.”

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