Wall Street Bulls Warming to a Trump Presidency
$DIA, $SPY $QQQ, $VXX
Some Key Wall Street players are warming up to presumptive GOP presidential nominee Donald Trump.
Their message for the financial markets is this: “A Trump presidency could be a catalyst for big gains.”
A Trump presidency will likely add up to a positive for equities, Donald Trump will not tolerate currency manipulation, he is very savvy when it comes to fiscal policy, and he will establish a pro-American business environment.
Donald Trump’s approach to trade could reduce fears among business that their profits will be heavily taxed. Based on this alone, he could surprise to the Northside for equities.
But Hillary Clinton has some anti-American business plans. It is a mistake for investors to ignore these Red Flags flying around a Hillary Clinton Presidency.
The political volatility attached to Hillary Clinton has not sunk in on Wall Street yet, and The Street needs to come to grips with the fact that a Clinton outcome is quite negative.
Hillary Clinton wants to raise taxes on investment gains and make it a lot more difficult for big businesses to move abroad to save on taxes. She’s also talked about imposing a fee on big banks, among other stiffer regulations on Wall Street.
The perfect scenario is a Trump Presidency and Republican-led Congress.
Warren Buffett, Chairman/CEO of Berkshire Hathaway Inc (NYSE:BRK-A & B), says that a Trump Presidency would not be the blow to US business that some fear.
The US is a attractive place in which to conduct a business, companies have enjoyed “terrific” returns on equity despite a sustained period of ultra-low interest rates, that is likely to continue.
Tuesday, the major US stock market indexes finished at: DJIA +222.44 at 17928.35, NAS Comp +59.67 at 4809.88,, S&P 500 +25.70 at 2084.39
Volume: Trade was much less than average with about 830-M/shares exchanged on the NYSE.
- NAS Comp -3.9% YTD
- Russell 2000 -0.6% YTD
- S&P 500 +2.0% YTD
- DJIA +2.9% YTD
| HeffX-LTN Analysis for DIA: | Overall | Short | Intermediate | Long |
| Bullish (0.34) | Neutral (0.12) | Very Bullish (0.57) | Bullish (0.33) |
| HeffX-LTN Analysis for SPY: | Overall | Short | Intermediate | Long |
| Bullish (0.33) | Neutral (-0.02) | Very Bullish (0.61) | Bullish (0.39) |
| HeffX-LTN Analysis for QQQ: | Overall | Short | Intermediate | Long |
| Neutral (0.06) | Neutral (0.07) | Neutral (-0.03) | Neutral (0.14) |
| HeffX-LTN Analysis for VXX: | Overall | Short | Intermediate | Long |
| Bearish (-0.42) | Neutral (-0.17) | Very Bearish (-0.59) | Very Bearish (-0.50) |
Stay tuned…
Paul Ebeling
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