Newsmax Finance Insider and economist Edward Yardeni has hiked his earnings forecast for 2017 as he expects Donald Trump to foster a more business friendly environment than Barack Obama.
The combination of a GOP White House and Congress is being widely interpreted by investors to mean less regulation, lower taxes and supportive of growth.
“Love it or hate it, it’s going to be quite dramatic and a government of deal makers as opposed to a government of shall we say ‘community organizers’ is going to be a radically different kind of regime. And, I think the market likes it,” Yardeni told CNBC.
Yardeni said stocks aren’t overvalued, calling it one of the biggest misconceptions which could boost the market even higher.
“I now think that earnings instead of being up eight percent, it could be up closer to 20 percent. That’s the kind of impact the substantial tax cuts could have,” said Yardeni, president of Yardeni Research. full story