February 28, 2017

On Tuesday, the S&P 500 was down 0.3% and Toronto was down 0.4%.

Tomorrow we will see how markets react to Trump’s speech.

There were certainly some positives for the market to consider (subject to getting them passed in the house and Senate):

A proposal to sped a trillion dollars on infrastructure.
Plans to cut regulations
Plans to lower corporate taxes
Tariffs on imports

There were also positives for workers and citizens:

Job creation from the above measures
Plans for lower drug and health insurance prices
A promise to lower crime
A middle class tax cut

But also some negatives:

All of the above would likely add massively to deficits and debts at least temporarily. And that in turn could lead to higher interest rates.

The protectionist trade moves could lead to retaliatory moves and lower trade and hurt the America economy.

The whole America first agenda could breed resentment in other countries.

A special office for victims of crimes by immigrants (albeit presumably only the illegal immigrants) could breed a lot of resentment in the U.S.

So, overall, definitely some positives but also some negatives. It will be interesting to see how markets react.

I also look forward to seeing the earnings from Canadian Western Bank tomorrow.