Well Mr Trump has said he is going to cut taxes. That’s great for any economy. He has said he is going to rebuild America’s failed infrastructure. We desperately need it, it has been a problem, and the market is paying attention to that. He said he is going to deregulate a lot of things. The market loves it because they expect it to be better. He said he is going to cut taxes for corporations. Which means their profits would be higher.
But I doubt where the money for all of this will come from. At the moment everybody is watching the good news, and not thinking about the possible bad news.
Mr Trump has insisted often that he will have trade wars with China, India and other people, and the market is ignoring that right now. Maybe he’s not going to do it. If he does stay away from the trade wars, the American economy will be better next year, as will the world economy. But, yes the market is far ahead of itself at the moment.
