Is a Stock Market Crash Likely Under President Donald Trump? History Weighs In With an Answer Wall Street May Not Like.
The Trump bull market may be running on borrowed time.
Overview
Just like peanut butter and jelly, outsize stock market returns have gone hand in hand with Donald Trump's presidency. Though there have been plenty of periods of heightened volatility, the annualized returns of the Dow Jones Industrial Average (DJINDICES:^DJI), S&P 500 (SNPINDEX:^GSPC), and Nasdaq Composite (NASDAQINDEX:^IXIC) have been higher under Trump than under most other presidents since the late 1890s.
While some of Wall Street's prime catalysts have developed organically, such as the evolution of artificial intelligence (AI), Wall Street's bull market rally has also been influenced by the president's policies. For instance, the Tax Cuts and Jobs Act (signed into law in December 2017) permanently lowered the peak marginal corporate income tax rate to 21%, leading to a surge in buyback activity from S&P 500 companies.
The Trump bull market may be running on borrowed time. Image source: Official White House Photo by Daniel Torok.
Details
Source
Originally published at www.fool.com.
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