Following the withdrawal of the Republican healthcare bill on Friday, investors are now worried that President Donald Trump will not be able to follow-through on the campaign promises that have driven the stock market’s “Trump Rally” since Election Day. According to Height Securities, those fears are justified.
When The Swamp Monsters Emerge
“Before Congress can plow ahead on tax reform, GOP leaders need to pass an FY18 budget in order to use reconciliation, which is probably a mid-to-late May event; we don’t think investors fully appreciate the risk to tax reform of a budget blowup, which we give 40 percent odds of occurring at this point,” Height analyst Peter Cohn explained.
Cohn predicts some form of tax reform is likely to happen prior to the 2018 elections, but investors who are expecting that reform to come prior to the end of the year may be disappointed.
For healthcare investors wondering about the outlook for healthcare reform, Height analyst Andrew Parmentier believes Republicans could try to tack on some version of a “skinny” healthcare fix onto a tax reform bill. Parmentier says the skinny version of healthcare reform “could include repeal of all or some of the ACA’s taxes and repeal of the individual mandate, replacing it with the 30 percent surcharge penalty introduced in the AHCA or some other softer penalty intended to compel younger, healthier people to participate.”
Parmentier added…
Click here to continue reading
Want to learn more about how to profit off the stock market? Or maybe you just want to be able to look sophisticated in front of your coworkers when they ask you what you are reading on your Kindle, and you’d prefer to tell them “Oh, I’m just reading a book about stock market analysis,” rather than the usual “Oh, I’m just looking at pics of my ex-girlfriend on Facebook.” For these reasons and more, check out my book, Beating Wall Street with Common Sense. I don’t have a degree in finance; I have a degree in neuroscience. You don’t have to predict what stocks will do if you can predict what traders will do and be one step ahead of them. I made a 400% return in the stock market over five years using only basic principles of psychology and common sense. Beating Wall Street with Common Sense is now available on Amazon, and tradingcommonsense.com is always available on your local internet!
