Wasn’t President Elect Trump supposed to be a disaster for the United States, the economy and global trade? Well Wall Street believes that he will be great for business and a Republican controlled Congress and Senate will be able to water down if not call all the shots. In this respect I believe that they are right.

The good stuff like lower regulation, a tax free corporate repatriation of profits to the US will both be a big gain to fortunate 500 companies will be passed quickly and ultimately will inflate Wall Street. Imagine over $2 trillion coming back into the US and a 15% corporate tax rate and most of it going into buying back corporate stocks,mergers and acquisitions and going to stock holders. Can you say the Dow at over 20,000 points? I can. and that is exactly what is going to happen.

As for free trade? The Republicans will indefinitely shelf TPP to make Trump more popular and do a few things here and there to make him look like the new champion of the American worker but don’t get your hopes up on killing NAFTA. He might just get an infrastructure bill signed that overall will be good for the economy, jobs, Caterpillar and construction companies. Overall he will be controlled by the Republican party which if they are smart will take the opportunity to prove the middle class that they can think about them (a little). So the best option is to let be Trump be Trump and water down any of the big stuff (trade wars, currency wars, scrapping trade).

Another reason for a positive Wall Street outcome will be that nationalist and conservative parties all over Europe will be on a rampage (watch Austria in a few months and France next year) that will drive money out of Europe and in the US stock market. So this Wall Street bubble will continue to grow. I am back in big but not in gun maker stocks. Sales of guns will go down. What has propped up gun sales in the last 8 years were constant false rumors by conservatives and the gun industry that the Democrats were going to curb the 2nd amendment driving fear and therefore sales. So short gun makers they lost their best marketing trick.