Donald Trump’s election victory last month has persuaded Mr. Market that US economic growth is destined to accelerate. The reasoning for the recent surge in the equity market: a pro-growth agenda is expected for 2017 and beyond, courtesy of a policy mix of corporate tax cuts, reducing regulation, and increases in infrastructure spending. Yet economic forecasts at the moment are calling for a relatively modest pace for the US macro trend in the near term. In fact, a number of GDP estimates point to a slower rate of growth following the 3.2% rise in GDP in this year’s third quarter. That could change, of course, once a Trump administration is running the show in the new year. At the moment, however, economic projections from various sources have yet to confirm the stock market’s recent burst of optimism.
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