Stocks are sharply higher this morning, as investors celebrate the Senate narrowly passing the tax reform plan. In the end, all but one Republican voted for the plan while a single Democrat supported the proposal. This critical step gets the White House within striking distance of passing the highest anticipated plan of the Trump agenda. This monumental success is the first major victory of the administration, and one that could help the growth rate of the U.S. economy skyrocket higher. As long as the millions of eligible workers who are not currently employed (by choice) step back into the workforce, this could be a massive success in the short run. However, if people who can work continue to remain on the sidelines, this could be disastrous. Only time will tell.
Friday’s market trading was a total mess after ABC released a false statement that President Trump’s former top advisor plans to testify against him for action he committed prior to his election. Within hours of this false statement, the Dow Jones Industrial average fell about 350 points. Over the weekend, Trump suggested that investors should sue ABC for the losses many adsorbed. Although such a lawsuit wouldn’t likely stand a chance in a court of law, it was an interesting statement made by the President. After ABC admitted their mistake and recanted the story, markets climbed back to near unchanged levels. After today’s push higher, stocks are again setting new all-time highs.
Under the continued strength of the U.S. stock market, we will maintain our locking bias.