Trump's Tax Cuts Could Propel S&P 500 Earnings by Over 20%
Experts suggest potential earnings boost from corporate tax cuts under Trump's administration, while tariffs pose a significant risk.
- Goldman Sachs forecasts a potential 20% growth in S&P 500 earnings over the next two years if corporate tax rates are reduced.
- Each 1% cut in the corporate tax rate is estimated to increase S&P 500 earnings per share by nearly 1%.
- Trump's proposed tax cuts aim to lower the corporate tax rate from 21% to 15%, creating optimism among investors.
- Market analysts warn that Trump's tariff policies, particularly on Chinese imports, could negatively impact earnings.
- Investors are optimistic, with significant inflows into US stocks following Trump's election victory, despite potential economic volatility.