The past four months has seen one of the most incredible stock market rallies in recent history, as US indices climb higher and higher every day. Not only has the Dow Jones Industrial Average broken through the 20,000 mark for the first time in its history, it is now well over halfway towards 21k. But gains are not limited to the Dow Jones; the blue chip S&P 500 has not seen a daily fall of greater than 1% in over 90 days, while the Nasdaq and small cap Russell 2000 indices have also reached fresh closing and intraday highs numerous times in 2017. What’s more is that this rally can be traced back to a single event in November. The election of Donald Trump.
Now inaugurated, the Trump rally has set off on its second leg as the 45th US President has quickly set about implementing drastic economic policies, the centrepiece of which is his upcoming self-styled phenomenal tax reform which could be implemented by August according to US Treasury Secretary Steve Mnuchin.
Trump hinted that he would reveal his tax plan 2-3 weeks’ time during a 9 February meeting with Airline executives and his upcoming address to Congress on 28 February certainly fits that timeline. Could the President use the primetime platform to make his announcement? Could we see the rally go even further as a result?
This report will break down what is expected from the reform, highlight other policies that could influence US stock markets and analyse 4 key stocks that could react significantly in reaction to Trump’s tax plan. If you feel like you’ve missed out so far on the Trump rally, you certainly don’t want to miss out on the next opportunity!