Donald Trump’s fiscal policies will take time to invigorate the economy and company earnings
by Thomas H. Kee Jr.
The stock market has rallied since the presidential election on expectations fiscal-stimulus policies proposed by Donald Trump will benefit the economy. That might be justified, but that doesn’t mean the stock market can continue to rally in the short run.
Longer-term positive influences from fiscal-policy improvements, instead of monetary-policy stimulus, are clear. Still, those positives won’t be immediate.
Part of Trump’s fiscal policy targets mainstream America, not asset classes such as the stock market, bond market and real estate as monetary stimulus does. That is largely why fiscal improvements can have lasting influence, though they take a long time to be realized.