However, some investors have become less sure about how much his “America First’’ policy will actually boost economic growth. Kathy Bostjancic, head of U.S. Macro Investor Services with Oxford Research, explains,
While headline equity indexes remain close to their record high, the rally in cyclical stocks has stalled, signaling possible hurdles for the equity market and economic activity at a time when the Fed is ready to raise interest rates sooner and more than markets had previously expected.
She adds that “the pullback in cyclical stocks versus defensive stocks reflects investor concern about the lack of detail and progress on pro-growth economic policies such as corporate tax reform and infrastructure spending, and the large focus on immigration restrictions that hold back growth.”
As Bostjanic told me, “it boils down to uncertainty,” as investors are simply looking for clarity in regards to Trump’s policies.
The “Forgotten Man” is wanting instant gratification on many of Trump’s key agenda issues including the Affordable Care Act healthcare repeal and replace, the border adjustment tax and overall corporate tax reform, infrastructure program, significant deregulation initiatives, individual income tax reductions, and foreign trade policies.
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