How Likely Is it That the Stock Market Crashes Under President Donald Trump? 2 Historically Flawless Prediction Tools Offer a Blunt Answer.
History has a knack for foreshadowing what’s next for stocks.
Overview
Outsize stock market returns have been a theme with President Donald Trump in the White House. The iconic Dow Jones Industrial Average (DJINDICES:^DJI), benchmark S&P 500 (SNPINDEX:^GSPC), and innovation-driven Nasdaq Composite (NASDAQINDEX:^IXIC) rallied 57%, 70%, and 142%, respectively, during his first non-consecutive term, and have gained 18%, 30%, and 40% since the start of his second term.
Trump's presidency has benefited from the artificial intelligence (AI) infrastructure build-out, better-than-expected corporate earnings, and record S&P 500 share repurchases. The latter has been fueled by the president's flagship tax-and-spending law from his first term, the Tax Cuts and Jobs Act, which permanently lowered the peak marginal corporate income tax rate to 21%.
Image source: Official White House Photo by Patrick B. Ruddy.
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Originally published at www.fool.com.