⁃ Economic Growth Outlook: Increased optimism that economic growth will persist in 2025 and through the end of the decade.
⁃ Stock Market Surge: Stock market has historic surge post-election indicates investor confidence in Trump’s economic policies.
⁃ Foreign Investment Boost: Foreign investors are bullish on the U.S. economy and assets, including the dollar.
⁃ Extended Tax Cuts: GOP likely to extend the 2017 Tax Cuts and Jobs Act in full, possibly lowering the corporate tax rate from 21% to 15% and include cutting taxes on tips, social security, and overtime.
⁃ Regulatory Rollbacks: Looser regulatory environment with reduced business regulations including rolling back Biden’s AI Executive Order. This could accelerate AI innovation and strengthen the US position in the global AI race.
⁃ Nuclear Power in AI: Nuclear power is becoming a preferred energy source for tech giants’ AI operations.
⁃ Government Downsizing: Aim to reverse trend of expanding government
⁃ Federal Budget Cuts by Musk: Elon Musk assigned to cut federal spending through D.O.G.E. With a goal of shaving 2 trillion dollars from the US federal budget.
⁃ Reduced Federal Spending as GDP Share: Reduce federal spending from 24% to 18.5% of GDP
⁃ Budget Surplus Goal: Aim for budget surpluses by 2031
⁃ Energy Price & Deregulation Impact: Lower energy prices and deregulation could help offset inflationary effects from higher tariffs.
⁃ Reduced Green Energy Subsidies: Possible reduction in green energy subsidies.
⁃ Private Sector Focus: Promote private sector growth and individual opportunities
⁃ Tech Investment for Productivity: Continued investment in technologies like AI, robotics, and automation expected to boost productivity.
⁃ Revitalized M&A Activity: M&A and capital markets activity likely to rebound with a more hands-off regulatory approach.
⁃ Fed’s Neutral Rate Commitment: Fed sticking to path of “neutral rate” 3% vs 4.5% currently. Per Powell “the election will have no effect on our policy decision”
⁃ Top-Performing Sectors: Areas that could out perform include, Financials, Industrials, Information Technology, Crypto and small caps.
⁃ Declining Volatility Expectations: Declining volatility could reflect expectations of Trump potentially resolving conflicts in Ukraine, Russia, and the Middle East.
⁃ Increased Defense Spending: Increased likelihood of more defense spending.
Overall a bigger private sector, smaller government and more opportunity for individuals to grow and create.