The markets are uninspired by the Trump tax plan

REMEMBER why the "Trump bump" began, all the way back in November? The rationale for the surge in stockmarkets was that the new administration would cut taxes and allow American growth to accelerate. And so we waited for the details. When they came yesterday, it was only a one-page set of bullet points, containing around 200 words. If, as one expert pointed out, it had really taken 100 experts to come up with the plan, they averaged two words each.

The response from the markets was a yawn. Analysts at Clear Treasury said that

Much of yesterday was a non-event, markets were waiting to hear what came of Trump’s tax plans but there was certainly an air of disappointment when finally released.

The S&P 500 and Dow Jones Industrial Average were slightly lower on the day, and the European markets have fallen today. Of course that could be related to the other story floating around yesterday—that America might withdraw from Nafta. With the country also reviving its trade complaints about Canadian lumber and imported steel, Citigroup has taken to issuing a "US Protectionism Round-Up". But this is only a reminder that, in market terms, there has always been a "Trump...Continue reading