Trumponomics suddenly gets big Wall Street thumbs up
A rundown of experts lifting their forecasts
Here's a rundown of who's lifted forecasts and what they're saying:
Bank of America Merrill Lynch: [referring to the S&P500 index] "Our 2016 year-end target shifts to 2,100 from 2,000 previously."
HSBC: We are raising our GDP forecast for 2017 to 2.3% from 2.1% in anticipation of a boost to consumption spending. The stimulus effect should be larger in 2018 as the full impact of tax cuts affects household finances. We forecast GDP growth in 2018 to average 2.7%, up from our previous forecast of 2.2%."
UBS: "U.S. GDP is likely to accelerate next year...A new fiscal policy regime -- corporate and household income tax cuts -- may further contribute to broader GDP growth although there's obviously uncertainty around new policy as well as an important drag from uncertainty around trade policy."
Capital Economics: "We now expect GDP growth to accelerate to 2.75% next year (up from 2%), with CPI inflation climbing toward 3%."
Yardeni Research: "In Trump World, pressure on profits could be very bullish for stocks thanks to over $2 trillion in repatriated cash and a significant cut in the corporate tax rate! That's a new reality for sure."
Strategas: "A key message of the market recently has been: Something is going to get done. Single-party government matters. It is possible that well-executed U.S. fiscal policy could boost growth substantially (1%+ on GDP) in 2017-18. Corporate earnings should benefit."
CNNMoney (New York)
First published November 29, 2016: 12:09 PM ET
CNN video and article: Trumponomics suddenly gets big Wall Street thumbs up - Nov. 29, 2016