Horizons’ Thackray – February Newsletter: “Big League Tax Announcement in the offing …”

Market Update

Note: The Trump statements below are not meant to have a political viewpoint.

The Anti-Trump Wall is currently a “huge” risk to the stock market. The Anti-Trump Wall is the legislative resistance being put in place to stop anything Trump.

Recently, Trump’s travel ban was put on ice, as it was blocked by the U.S. court system. Up until the travel ban, most of Trump’s announcements caused the desired reaction in the stock market. Trump’s policy by Twitter helped to drive up the U.S. banks, the small cap sector and the overall stock market.

The travel ban was diff erent, as the stock market fell after it was announced. The stock market fell not because of the impact that a travel ban would have on the economy, but because of the perceived sloppiness in which the ban was implemented. For the fi rst time, investors started to question whether Trump was going to be able to implement his policies in an effective manner.

The anti-Trump movement is trying to block everything and anything Trump, which could ultimately slow Trump’s plans. If investors start to perceive that Trump’s plans are being delayed, their expectations for the economy could be reduced and hence have a negative impact on the stock market.

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