Prediction: President-Elect Donald Trump Reclaiming the White House Paves the Way for This Multitrillion-Dollar Investment to Send Stocks Soaring

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No event has been more anticipated in 2024 than Election Day. With current President Joe Biden stepping aside, it was a certainty that someone new would lead our great nation forward over the coming four years.

Although not every aspect of the legislative process has relevance to the stock market, elections do, ultimately, determine which elected officials will shape fiscal policy on Capitol Hill. While some aspects of election night are still being determined, as of the time of this writing on Nov. 6, the biggest question of all has been answered: Who will be president?

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In the early morning hours on Wednesday, Nov. 6, the Associated Press called the election for the former president and now President-Elect Donald Trump.

Former President and President-Elect Donald Trump delivering remarks. Image source: Official White House Photo by Joyce N. Boghosian.

During Trump’s first term as president, which ran from his inauguration on Jan. 20, 2017 through Jan. 19, 2021, the stock market performed exceptionally well. The ageless Dow Jones Industrial Average (DJINDICES: ^DJI), broad-based S&P 500 (SNPINDEX: ^GSPC), and growth stock-propelled Nasdaq Composite (NASDAQINDEX: ^IXIC) respectively rose by 56%, 67%, and 138%.

But the latter half of Trump’s presidency was also characterized by the initial stages of the COVID-19 pandemic, which resulted in historically low interest rates and rounds of fiscal stimulus from the federal government. This is to say that trying to compare what happened in his first term to what may occur in the second is night-and-day different.

While Wall Street’s post-election reaction was resoundingly optimistic, policy questions and concerns do remain.

For example, President-Elect Trump has stated that he’d like to institute tariffs on goods imported into the U.S. Goods imported from China, the world’s No. 2 economy by gross domestic product, would face a 60% tariff under Trump’s proposal, while goods imported from all other countries would endure a tariff of up to 20%.

The purpose of tariffs is to promote domestic production and make American-made products more price-competitive with goods being imported into the United States. However, tariffs can have unintended consequences. Specifically, they can increase costs for consumers and businesses, as well as worsen trade relations with China and our allies.

There’s also concern about America’s rapidly rising national debt. With Donald Trump favoring low tax rates for corporate America and working Americans, it raises the question of what, if any, progress will be made in reducing the federal deficit during his second term in the Oval Office.

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