President Signs Historic Tax Cuts And Jobs Act; Stocks Drop A Fraction
Stock prices have soared all year, partly on expectations of a corporate tax break. The months of Washington, D.C. drama started last February 9 when President Trump promised a "phenomenal" new tax law, which was followed by a stock surge.
Since Mr. Trump's election on November 8, 2016, the Standard & Poor's 500 stock index appreciated about 25%. The spectacular rally has been underpinned by strengthening economic data month after month throughout the year, in addition to the promised tax cut. The tax cut was already reflected in stock prices by the time the President signed it. It wasn't news anymore.
The more important news affecting your wealth on Friday was that the index of leading economic indicators rose again in November. The Conference Board, which tracks the LEI monthly, said the data suggests "solid economic growth will continue into the first half of 2018."
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