A New Day In America

We believe Trump 2.0 represents a major regime change that’s bullish for the economy and stocks. We now expect a sooner end to current geopolitical crises and possibly some improvement in the fiscal situation if business-friendly policies boost GDP growth enough to keep pace with mounting federal debt. That along with the tax cuts, deregulation, and better productivity growth we see under Trump increase our confidence in our Roaring 2020s scenario as well as our forecasts for S&P 500 revenues, earnings, and profit margins. That in turn raises our sights for the S&P 500’s valuation and year-end price targets—to 6100 in 2024, 7000 in 2025, 8000 in 2026, and 10,000 by the decade’s close. … Also: Eric reports that productivity growth is still booming.