Tax Reform Fuels Santa Rally: ETFs & Stocks To Bet On
Zacks Investment Research | Dec 20, 2017 10:25PM ET
Thanks to Trump’s pro-growth economic policies aimed at accelerating economic improvement, reducing regulation, increasing spending, slashing taxes, and boosting jobs and corporate profits, the U.S. stock market is in the midst of the second largest bull run this year.
In fact, the major indices hit a series of fresh highs early this week on optimism surrounding the biggest tax overhaul in decades with the S&P 500 and the Dow Jones gaining about 0.6% and 2%, respectively, so far this month.
Santa to Bring a Bag Full of Tax Benefits
The tax reform cuts corporate tax rates to 21% from 35%, lowers individual tax rates and allows companies to bring offshore cash back home at reduced rates. A massive $1.4-trillion tax cut will create an economic surge, boosting job growth and reflation trade. It will further accelerate earnings, leading to increased dividend and buyback activities and paving the way for increased mergers and acquisitions (read: Zacks Investment Research
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