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Let's put politics aside, for a moment, and look at the facts. Markets liked what they heard last night from President Donald Trump.
Asian markets reacted favorably overnight, European markets are up nicely this morning, commodities prices are rising, and U.S. stock futures (pre-open) point to another round of record all-time highs.
But politics are the bump in the road ahead.
After an "America First" speech, painted in conservative, Republican overtones, the President and his administration face a deeply divided Congress.
If markets are going to continue to rally, they'll have to withstand U.S. and global political fires, the flames of which are only just beginning to be fanned.
Here's what's really pushing markets higher, and what to expect on the horizon…
Divided States of America
U.S. markets have been on a tear since the unexpected election of Donald Trump.
The President's speech last night to a joint session of Congress is exactly why.
In this speech, President Trump reiterated his campaign promises to "restart the engine of the American economy" by making it easy to start businesses here and making it hard for the businesses here to leave. He confirmed his promise to significantly lower corporate taxes, and for the first time, sounded like he would marry middle class tax cuts to corporate cuts. He addressed his administration's push for "free and fair" trade. And, last but not least, the President called for a trillion dollar "national rebuilding" effort financed by public and private investment.
It's those promises of deregulation, hints of border tariff on imports, tax cuts, and potential for infrastructure spending that has lit a fire under U.S. stocks.
Executive orders aside, the President's big plans are still only promises. If U.S. equities are going to continue to rally, promises will have to turn into policies enacted by Congress.
It's no secret that the Democrats have a visceral disdain for Donald Trump, and their constituents are still holding onto their battered and bruised feelings over losing an election they thought was a foregone conclusion. There's going to be a lot of pushback on the President, his administration, his promises, and his proposed policies by almost all Democrats.
One incident last night in the House chamber says it all. Here's how Town & Country reported it.
Every year of his 29-year tenure, New York congressman Eliot Engel has stood in the aisle of the House chamber to shake the President's hand during the joint Congressional address. It didn't matter which party the commander-in-chief represented, Engel, a Jewish Democrat representing New York's 16th district, which contains parts of Bronx and Westchester County, was there to greet him.
But not this year.
"I've decided not to stand on the aisle of the House chamber to shake the President's hand during this joint session of Congress as I have done in the past through Democratic and Republican administrations alike," Engel said on the House floor. "This will be the first time d…
About the Author
Shah Gilani is the Event Trading Specialist for Money Map Press. In Zenith Trading Circle Shah reveals the worst companies in the markets - right from his coveted Bankruptcy Almanac - and how readers can trade them over and over again for huge gains. He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.