Bull or Bear?

S&P 500 since Trump took office

Less than twenty-four hours ago President Trump released his long awaited plan on how the government will spend their money. For the past couple decades the United States debt has been substantially increasing and we have had to keep raising the debt ceiling. Finally, President Trump is trying to devise a way to lower government spending while keeping the government in stable condition. Not only does the government affect people's lives, but the stock market is ultimately influenced by Trump’s economic policies.  With Trump in office the stock market has been perceived as a “bullish” market that has been and will continue to bolster the economy. In an article by Stephen Moore, economic consultant of The Washington Times, says that “the corporate tax will be cut in half, investor taxes will be down about 15 percent and money will flow back to America from a lower repatriation tax. . .  the lower taxes on businesses and investors will translate into trillions of dollars of gains for investors and pension funds with wages and GDP surging too.” Stephen Moore elaborates that the lower taxes will be very good for businesses. With lower taxes people will be more willing to invest in the stock market which will boost the GDP and increase wages. He compares “Trumpism” to “Reaganomics,” but Reaganomics did not see success until many years later. For Trump to succeed with the bull market that is in place right now he will have to take action immediately. Moore emphasizes that Trump makes his tax cuts as soon as possible, suspend Obamacare investment tax hike, and demand congress does this in his first 100 days. Now, Donald Trump has to show his political side where he needs to develop a plan soon on how to get the tax cuts through congress.