Athens State professor talks Trump's plans to keep stock market roll going
ATHENS, AL (WAFF) - The stock market has hit new highs since Donald Trump became president of the United States.
Factoring in 401k retirement plans, roughly half of all American adults have a stake in the stock market. 401k plans are already reaping benefits since Trump became president, with the typical plan rising thousands of dollars.
The stock market took a slight dip on Thursday, but the Dow Jones Industrial remained over the 21,000 plateau, first realized the day following Trump's address to Congress.
Thomas Pieplow, professor of business at Athens State University, said there are promising economic factors for investors that should help the stock market over the long haul, including Trump's pledges to cut taxes and to reduce regulations.
"The market has reacted very favorably to these things coming to fruition. The view it as being very pro-business in terms of increasing business activity, profits, jobs," Pieplow said.
Pieplow said investors may approach some of Trump's initiatives with caution. He said some investments could be risky until legislation is passed.
Pieplow said part of the post-speech Wall Street run happened because of Trump's plan for $1 trillion in infrastructure spending, which is dependent on congressional support from Republicans who often shy away from big spending bills.
"One of the things the market does not like is uncertainty. And uncertainty will breed that volatility. I think that's what's going to be interesting to watch over the next six months, the next year, because these promises are going to have to be codified in legislation. And that's where the challenge is going to be, because infrastructure is something the previous administration had proposed," Pieplow said.
Pieplow said Trump inherited some good economic trends, including low unemployment and an already-rising stock market, on which to build upon.
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