Posted by: Dr Pano Kroko Churchill | November 30, 2016

Have you seen how the Markets love The Donald?

Making America Great Again has started in earnest.

This time around it is the Markets that are hitting record highs after the election of Donald Trump as the next president of these United States.

You might recall the scaremongering that was going on before the Elections lest the American people choose their President as a Strong Pro Free Market Capitalist Republican, instead of the choice of the Corporatists, the wet dishcloth sponging the behind of all the rich and powerful dictators of the world and of the marketplace, who contributed to her personal foundation.

And how can you blame them, when after the most anemic recovery from a deep recession / depression, micromanaged by the hapless Obama administration through the ministrations of a Banker-Wankers government — everybody was scared witless. Indeed we have experienced so many years of slowing earnings growth and little in the way of excitement for simple ordinary investors or even for the biggest ones, and certainly for all the Wall Street analysts who make their living by observing the Market swings — that we are all forgetting what it is to see a roaring market.

However since the elections gave us this New President Donald Trump, many Wall Street analysts and pundits are now very hopeful that President-elect Donald Trump will finally make things not just interesting — but outright GREAT.

Now we see a roaring market all over again.

Making America Great Again is no small potatoes and starting from the liquidity markets is a great place to give hope and money to the people.

And the recent Market expansion drives the point home top all those sour pusses out there that predicted gloom & doom from the get go about the Trump Presidency.

So when collecting data from the Goldman Sachs Group’s Analyst Index — a proprietary measure of growth across different sectors of the S&P 500 — the firm included a question this month, on what the election of Donald Trump might mean for the industries covered by those surveyed.

Turns out, all the analysts at Goldmans are rather optimistic.

“This month, analysts commented on how the results of the U.S. election will affect companies in their respective sectors,” the team of Goldman Sachs analysts wrote in their new note. “While their responses suggest that there is still uncertainty about the sector-level impact, the majority of sectors are anticipating favorable effects,” they say, adding that expectations of lower tax rates and economic stimulus are among key reasons for the favorable outlook.

Goldman Sachs certainly isn’t the first to hail the potential benefits of a Trump presidency. The quantitative analysts at JP Morgan Chase and Co, also wrote that many of Trump’s policies would be “pro-growth,” even while uncertainty about specifics remains high. They further wrote this week that if the campaign promises that have the potential to stimulate growth get implemented, the S&P 500 could see as much as $20 in additional earnings-per-share growth over the next few years.

Still, “it is difficult to overstate just how wide the range of possible policy outcomes is currently,” they said. “While the majority of President-elect Trump’s policies are pro-growth for equities, parts of his more populist rhetoric could significantly disrupt the economy,” they add, pointing to the promise of stricter trade policies. The strategists’ skepticism that all the former real-estate mogul’s campaign promises will go through means they stop short of incorporating the effects into their base-case earnings forecasts.

Of course there’s no suggestion that all industries will benefit alike: Goldman’s analysts expect some to miss out, and some even to suffer under Trump. Some respondents said they expected the election outcome to weigh negatively on their sectors; among those were autos, aerospace, clean energy, and agribusiness. Concerns regarding the outlook for business activity stem from potentially more restrictive trade policy, notably for clean energy and agricultural industries, and higher inflationary pressures…

Yours,
Dr Churchill

PS:

So all of the Goldman analysts surveyed are optimistic, and so are the majority of the independent dealers, brokers, and market makers.

Yet as always I also tend to believe the optimistic scenario here & now, because for the next 3-4 years we are going to be in a grateful mode, that will surely keep growing jobs and incomes in America.

That’s How We Make America Great Again.

Giving Confidence to the People and Keeping the jobs at Home.

And God willing with Trump winning a second term — then we can balance the books too.


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