Trumped: by corporate America
Morgan Stanley’s equity strategist team spells it out in their newsletter for client investors “We assume just over 50 per cent of the earnings growth over the next two years will come from a change in corporate taxes (from 35 to 25 per cent)”. That leaves working taxpayers to fill the gap. Not quite the American dream of getting ahead through hard work which Trump sold during the elections.
The newsletter portrays their corporate American dream this way “One way to view stock investing is the process of buying a little dream today in the hope of selling it to a sucker with a bigger dream later.” Welcome to their more volatile new world.
Also in the news, Trump nominated Rex Tillerson, ex CEO of Exxon Mobil, as secretary of state and chief foreign affairs adviser. You can’t get clearer than that – US oil interests rule. Tillerson accumulated wealth of $250 million in his four decades with Exxon Oil.