With Hillary “calling in sick” during an ever tightening race, a Trump White House looks closer and closer every day. What does that mean for the markets?
How Long Will Clinton Lead Lead the Poll?
Election years are always interesting. But 2016 has been a whirlwind of a campaign for so many. Sanders. Carson. Cruz. Jeb. Kasich. Scott Walker. Rick Perry. Joe Biden ….
And then there were two. Donald Trump and Hillary Clinton.
While Clinton was expected to be in the race, Trump is a true wild card. Initially, no one took The Donald seriously. Now, he is within striking distance of Hillary, who actually called in sick with a case of pneumonia – a bad sign for a future POTUS. The presidential race is now a coin toss, with Clinton’s lead dwindling day by day.
Here’s how the markets would react to President Trump.
The two remaining candidates have very different tax plans. Clinton’s plan proposes an increase – particularly to small businesses (by almost 50 percent!). Trump’s plan focuses on simplifies taxes across the board, especially for the middle class. The Donald pointed out that his tax plan would give workers an extra 40 percent in their paycheck, asking “what would you do with 40 percent more wealth?”.
Trump’s plan offers an opportunity for US citizens to have more money in their pocket, creating more spending, creating more job (and economic!) growth.
One of Donald Trump’s boldest plans is his healthcare platform.Trump hates Obamacare. He’s announced on several occasions that on day one of his presidency he will ask congress to repeal the Affordable Care Act.
So what does that look like?
Trump will base his healthcare reform on free market economy.principles. Insurance companies will no longer be able to segregate by state. People will be able to shop for the best insurance policy for them regardless of the state in which they reside, potentially saving buyers hundreds of dollars a month.
Even more impressive is how his health reform will tie into his economic plans. Donald Trump plans to allow individuals to fully deduct insurance premium payments from their tax returns under the current tax system. This bold move would ensure everyone would be able to afford insurance by allowing them to write off expenses. Additionally, individuals would be allowed to use tax free Health Savings Accounts (HSAs), which would be allowed to accumulate and become part of an individual’s estate, being passed down through generations with zero death or tax penalty.
Trump would also force price transparency for services, allowing price shopping between hospitals and clinics to save patients money. He would leave medicaid to the states, offering block grants instead of federal oversight, and remove barriers to entry for safe drug companies, offering more options to patients, and (again) saving everyone money. It all ties back to the economy for The Donald.
Thanks to the fiscal stimulus Trump would enact, markets would respond very positively. Trump plans to spend twice as much as Clinton on infrastructure. Combined with his massive tax cuts and healthcare reform, markets would see an influx of spending, with citizens having more money to spend. All of this would seriously strengthen the U.S. dollar – and the economy.
Watch CNN shares Clinton leads over Trump here!
With a Trump win, expect a bullish market. And a bullish economy.
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