TRUMP’S TAX PLAN SETS THE STAGE FOR DJIA 30,000 $CAT $MCD $AXP $SPY $BAC $EXPE $FB $INTC $JPM $TMUS

 TRUMP'S TAX PLAN SETS THE STAGE FOR DJIA 30,000 $CAT $MCD $AXP $SPY $BAC $EXPE $FB $INTC $JPM $TMUS

Lower corporate taxes could supercharge the economy and boost company earnings

Investors who have written to me are excited about President Trump’s proposed tax plan. The kicker is that any tax relief would come on top of good company earnings (so far) this earnings season.

I’ve been asked for an optimistic long-term target for the U.S. stock market. So here it is: Dow DJIA,  30,000 in five years. However, investors are well-advised to review all scenarios, not only the optimistic one.

The Trump tax plan

Trump is expected to unveil basic principles of his tax plan Wednesday. He wants to cut the corporate tax rate to 15% from the current 35%. He also will propose a 15% rate to be used by pass-through entities, compared with the top current rate of 39.6%. American corporations have stashed over $2.6 trillion of earnings abroad. For repatriation, he will propose a 10% tax on foreign earnings.

If enacted, these changes would be very positive for the economy. Trump’s tax plan would boost gross domestic product (GDP), though tax revenue would initially fall. Let’s examine this issue with a chart.

Chart dating to 1950

The chart shows GDP growth going back to 1950. Trump has been talking about 4% growth in GDP, which, as you can see, is a tall order. It’s been attainable in the past, but not so much recently. Still, even if Trump doesn’t meet his own goal, the economy — and corporate earnings — would benefit.

Ask Arora: Nigam Arora answers your questions about investing in stocks, ETFs, bonds, gold and silver, oil and currencies. Have a question? Send it to Nigam Arora.

The biggest factor

The biggest single factor in the long-term direction of stocks is earnings growth…Read more at MarketWatch

You are receiving less than 2% of the content from our paid services …TO RECEIVE REMAINING 98%, TAKE A FREE TRIAL TO PAID SERVICES.

Please click here to take advantage of a FREE  30 day trial.

Check out our enviable performance in both bull and bear markets.

FREE: SUBSCRIBE TO ‘GENERATE WEALTH’ NEWSLETTER

Related Posts

IS A 20% DROP AHEAD IN THE STOCK MARKET LIKE LAST YEAR? $AAPL $MSFT $FB $AMZN $NVDA $MU $INTC $AMD $GOOG $QQQ $SPY $DJIA

At the end of 2018 the stock market fell about 20%. Could it happen again this year? Let’s use a chart ...

THIS FAANG DARLING STOCK HAS BEGUN TO LOSE ITS MOJO $NFLX $AAPL $AMZN $FB $GOOG $DIS $T $SPY $QQQ $DJIA

FAANG stocks are popular. But now one of them is beginning to lose its mojo. How long could this last? Let’s ...

WEEKLY MARKET DIGEST: SLOWEST CHINA GROWTH SINCE 1992, MARIJUANA INSANITY $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

THIS CHART SHOWS HOW MUCH BREXIT MATTERS TO THE U.S. STOCK MARKET $SPY $QQQ $AAPL $AMZN $FB $NFLX $NVDA $MU $AMD $INTC $GOOG

Many investors are getting excited about the Brexit deal. Some excitement is warranted because it took years of wrangling for the ...

PRUDENT INVESTORS TAKE NOTE OF A BIG TURN IN MONEY FLOWS IN APPLE, AMAZON, NETFLIX AND NVIDIA $AAPL $AMZN $NFLX $NVDA $FB $AMD $BABA $INTC $MSFT $TSLA $GOOG

Earnings season has started. Wall Street is bullish on the first phase of President Trump’s trade deal with China. The ...

JPMORGAN: GOOD EARNINGS FROM THIS BIG BANK $JPM $C $BAC

This post was just published on ZYX Buy Change Alert. JPMorgan (JPM) is long from $34.14.  It is trading at $118.50. JPM reported earnings  better than consensus and the whisper ...

THE TRADE DEAL GAME PLAN AFTER CHINA AND WALL STREET APPEAR TO HAVE WON THIS ROUND $AAPL $AMZN $DIA $DJIA $GLD $SLV $INTC $MU $SPY $AMZN

On the surface it appears that China and Wall Street won this round of the trade deal. Who lost? It appears ...

WEEKLY MARKET DIGEST: TRADE DEAL, GOLD SOLD, MARIJUANA TARGETS SLASHED, TURKEY INVASION $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

HUMAN RIGHTS IN CHINA AND LIMIT TO CHINESE STOCKS WEIGH ON STOCK MARKET BULLS $GLD $SLV $FB $AMBA $ESZ19 $SPY $QQQ $GDX $INTC $AAPL $AMZN $GOOG $MU

The repression of human rights in China, limits on American money flowing to Chinese stocks and a mini-crisis in Turkey ...

TRUMP BRILLIANTLY SLAYS THE BEARS AND BULLS BEHAVE LIKE PUPPY DOGS $AAPL $AMZN $GOOG $FB $INTC $MU $NVDA $MSFT $AMD $DJIA $QQQ $SPY

At a time when multiple whistleblowers may be emerging against President Trump, economic data are showing weakness, a grim earnings ...

WEEKLY MARKET DIGEST: PAY ATTENTION TO BAD BOND AUCTION IN JAPAN THIS COULD BE THE FUTURE IN THE U. S.; SHORT SQUEEZE $DIA $GLD $QQQ $SLV

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

JOBS REPORT ISN’T GREAT NEWS FOR STOCK INVESTORS $QQQ $SPY $DJIA $AMD $AAPL $MU $INTC $NVDA $AMZN $GOOG $MSFT $GOOGL

Prudent investors ought to pay attention to the weakness in what’s widely considered a strong September jobs report released Friday. ...

ANOTHER ALARM RINGS FOR THE STOCK MARKET, BUT THERE IS NO REASON TO PANIC YET $DIA $SPY $GOOG $CRWD $ASHR $NVDA $MSFT $AAPL $FB $KWEB $MU $PTON

Another alarm rang for the stock market when a survey of purchasing managers of American factories fell to a level ...

WEEKLY MARKET DIGEST: WALL STREET POSITIVE ON IMPEACHMENT, MARIJUANA BANKING, BEST MOVE IN INDIAN STOCKS $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

FIVE IMPORTANT POINTS EVERY PRUDENT INVESTOR OUGHT TO CONSIDER ABOUT TRUMP IMPEACHMENT $SPY $AMZN $JPM $MU $CAT $UNH $GLD $MRK

The House of Representatives has started an impeachment inquiry into President Trump. What does that mean for investors? First and foremost, ...

MONEY FLOWS IN 11 TECH STOCKS — PAY ATTENTION TO UNUSUAL CHANGES IN X-RAYS OF AMAZON, NETFLIX AND APPLE STOCKS $AMZN

Prudent investors pay attention to money flows because that gives them an edge. Professionals already know they are competing with the ...

WEEKLY MARKET DIGEST: FED INJECTS FUNDS FOR THE FIRST TIME IN A DECADE AND GLOBAL GROWTH FORECAST CUT TO THE SLOWEST IN A DECADE $SPY $GLD $QQQ $SLV

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

IF YOU COULD BUY ONE ETF FOR THESE MARKET CONDITIONS, THIS WOULD BE IT $USMV $SPY $QQQ $DJIA $SPX $AAPL $AMZN $GOOG $UNH $BA $GS $HD $MCD $VZ

Global economic growth is slowing. The Organization for Economic Cooperation and Development (OECD) has cut its growth projection to 2.9% ...

A JUMP IN OIL PRICES IS CREATING TRADING OPPORTUNITIES IN THESE INVESTMENTS $CRK $USO $CHX $DWT $VLO $UWT $DWT $OIH $CLV19 $XLE $XOP $EPI $UAL $DAL $WLL

An attack on Saudi Arabian oil fields has removed about 5% of global oil supplies. As a result, oil prices ...

WEEKLY MARKET DIGEST: ‘SUPER MARIO’ FEAT MAY INFLUENCE ‘BONEHEADS’ THIS WEEK AND MOVE STOCKS AND GOLD, OIL MOVE $DIA $GLD $QQQ $SLV $SPY $TBT $USO

Weekly Digest from The Arora Report is popular among serious investors and money managers because they have found studying insights ...

Follow

Get every new post delivered to your Inbox

Join other followers