FxWirePro: Another 17 percent rise in S&P500 likely during Trump Presidency

US benchmark stock index, S&P 500 has risen more than 6 percent, since the Republican candidate Donald Trump was elected as the 45th President of the United States on November 8th. This year, S&P 500 is up more than 10 percent so far and the index is in its eighth year of consecutive yearly bull run. This performance is likely to continue ahead, during Donald Trump’s presidency.

Many of the proposals tabled by Donald Trump during his campaign are extremely pro-equities. Trump’s tax cut proposals from 35 percent to 15 percent will lead to an immediate rise in the earnings per share for the S&P 500. In addition to that, there are proposals like increased infrastructure spending, one time lower taxing for repatriation of earnings from abroad to the United States, a return of manufacturing jobs to the United States, opening up of the full potential of oil and gas sector, and regulatory reforms.

If these proposals are carried through during the Trump Presidency, we suspect the yearly bull run to continue and S&P 500 to reach as high as 2670. Corrections are unlikely to be beyond the double bottom around 1800.