Moreover, some are worried that House Republicans may not garner the necessary votes to replace the Affordable Care Act, or Obamacare, further fueling concerns over Trump’s ability to pass his planned tax cuts and deregulation initiatives.
“It’s an illustration that perhaps this isn’t going to be a process whereby things that are proposed get rubber-stamped,” Mark Luschini, chief investment strategist at Janney Montgomery Scott, told the Wall Street Journal. “As a consequence it jeopardizes perhaps the market’s confidence in the ease and passage of corporate tax reform, which is clearly market friendly.”
Loose monetary policies, strengthening corporate earnings and an improving global economy still support a positive growth outlook, but more investors are still waiting for clarity and definitive implementation of planned government policy changes.
“Trump’s ability to get things done will stay at the forefront of investors’ minds,” Katie Nixon, chief investment officer at Northern Trust Wealth Management, told the WSJ. “Every program, whether it’s the Affordable Care Act or the travel ban, is being interpreted as information in how successful he’ll be in getting his bigger strategies enacted. If Republicans can’t coalesce around the Affordable Care Act, can they do it around tax reform?”
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