(image via wikimedia)
By Rick Amato
All eyes will be on President Donald J. Trump’s first Joint Session of Congress speech Tuesday Night and what a wild night it is that is being anticipated. Democratic lawmakers are expected to troll the president while he speaks- they’ve invited Meryl Streep, on the eve of the speech Nancy Pelosi gave some crazy talk about wanting to impeach the president- except, she said, his supporters are in denial, and don’t we all know that Trump himself ever the entertainer will provide some memorable moments.
Wall Street will be particularly interested in hearing if he delivers specific ideas on tax cuts and deregulation or vague, general sound bites. One or the other will have an impact on the stock market’s performance.
The Dow finished Monday on yet another record high to close up 15 points at 20,837. That makes it the 12th straight session the index closed at a record, its longest streak since 1987.
As I pointed out several times previously the strong stock market’s performance under President Obama was based upon the monetary policy of the Fed- ie: low interest rates – and not key market fundamentals such as corporate earnings and earnings growth. The precise things which translate into jobs and increased wages on Main Street. That’s why this observation yesterday by Raymond James Chief Investment Strategist Jeffrey Staut is so noteworthy,
“We have transitioned from an interest-rates driven bull market to an earnings-driven bull market. That’s the main story. I think we’ve got another six, seven or eight years in this bull market. If you run the models … you could see 4,000 on the S&P.”
Time will tell if Staut is right in his comments or just swimming in over-exuberance. But if he is indeed correct and the markets have transitioned from interest rate driven to earnings driven then what follows will be jobs, jobs and more jobs. The sort of thing which will render Ms. Streep and Ms. Pelosi as being meaningless. Wall Street is watching.
Recently I interviewed financier Ziad Abdelnour who is the author of the new upcoming book “Capitalism From The Inside Out”, due out in July. Essentially Abdelnour, who was a NYC fundraiser for the Trump campaign, explains how to profit from the stock market during the Trump era. He believes Wall Street, healthcare and insurance will be some of the leading industries over the next four to perhaps eight years. His message to investors in the upcoming book: “Do what Wall Street does, not as they say”.
To listen to my full interview with Ziad Abdelnour click here: