Tuesday 7 November 2017

The Trump Rally is the fourth best since the 1936's

Since the election of Donald Trump as president last November, the US indices enjoyed a very good performance.
And while the growth of over 20% for the S & P 500 index and 30% for the Dow blue chip index, sending indexes to new records is far from being their best performance compared to modern US presidents.
According to data from the US investment bank Goldman Sachs, the rise in US elections after Trump's election victory is the fourth best since 1936. With a better performance for such a period of election victory, the markets were distinct during presidents George Bush, John Kennedy and Bill Clinton.
The market rally after Clinton's 1996 election victory raises the S & P 500 from nearly 30% a year and over 50% over the next 24 months. This is the biggest rise after a presidential election victory.
It can also be argued about the motives behind the growth of the market. To a large extent, the current one is predetermined by the hopes for tax reforms that will mainly ease major US corporations.
However, as Goldman mentions, shares of companies that are expected to benefit most from tax reform have been worse off the market as a whole this year.
In addition, there are warnings, including from the US Treasury Secretary, that if the tax reform is not adopted, we may see a substantial fall in stock prices.


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