This week the stock march closed at over 21-thousand up more than 300 points. Some market watchers say the speech hit all the right notes.
“He’s talking about taxes, he’s talking about trade, he’s talking about regulation. So, lowering taxes , making trade fair for once, putting America first in trade, and then lowering regulations, and he’s already rolling regulations back,” said Blanchard.
The Financial Guys J.R. Blanchard says the optimism is resonating not just on Wall Street but also on Main Street.
“It is spreading through America and it is so welcome for business owners who have struggled so long in times that were very hard to make money and do business. So, it’s very welcome,” said J.R. Blanchard.
“It’s optimism. It’s basically the idea that whatever the president will do will actually fuel economic growth, and then you see that optimism reflected in the numbers even coming from the White House,” said Tiu.
Professor of Finance at the UB School of Management Cristian Tiu says while the President hasn’t revealed much details his policies could spur some economic growth but it could come at a price.
“What is it that we should expect in the short run in terms of predictions? I guess large quantity companies will do a little bit less well, and then probably small stocks that tend to be concentrated more in the U-S that could benefit more from protectionism will tend to do better. We’ll see bonds basically and cash, I guess, be not so attractive, partly because of the federal increase interest rates. But that’s about it,” said Tiu.
Blanchard says he’s just hopeful the President will get the support he needs to fulfill his promises.
“Hopefully Congress will back him up and we will have growth, we will have growth in business, hopefully the stock market will continue to rise. I would never guarantee that. And we’ll see if he gets re-elected, maybe we have a nice eight year run in the stock market that would be fantastic for all of America,” said Blanchard.