skews13
Diamond Member
- Mar 18, 2017
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- Trump's second term won't be the rocket fuel for stocks some expect, Capital Economics said on Friday.
- However, AI enthusiasm will drive the S&P 500 to reach 7,000 at the end of 2025, the firm said.
- Trump's tax, deregulation, and tariff proposals might disappoint the market.
While investors seem convinced that Trump offers the best outcome for stocks, the research firm pushed back on this idea. Bullish momentum should still drive indexes sky-high next year, but that will only reflect ceaseless enthusiasm for artificial intelligence rather than a boost from new policies.
By the firm's estimates, the S&P will surge to around 7,000 by the end of next year, indicating about 15% upside from current levels.
"However, this has nothing to do with the policies we expect will be delivered," Capital Economics said. "In fact, we think these will be negative for equities, as Trump's second term proves to be neither 'pro-growth' nor 'pro-business.'"
Donald Trump. Not for business. Not good for anything.