PORTSMOUTH, NH
Investors also appear to be betting that Trump’s pro-growth policies will outweigh the negative impact of higher inflation, according to Paul Stanley, chief investment officer of Granite Bay Wealth Management. Investors think it’s likely that the president will slash taxes and dial back regulation during his second term, two developments Wall Street forecasters have said could boost stock prices.
“I think Trump’s made it pretty clear that what to expect is less regulatory oversight and lower taxes and things that have made some people optimistic about the markets. So those other risks that have been out there with inflation are just kind of taken to the back burner right now,” Stanley told BI.
Stanley also considers a 10% stock pullback to be a “strong” possibility.
“There’s the likelihood of extreme volatility in one direction or another just based on where we sit,” Stanley said. “So if there’s any sort of hiccups in earnings for some of the mega-cap companies and things, then we certainly could have some sort of pullback.”