The bigger picture: Infrastructure spending in the US is likely to be the next big political focus for markets.
Fresh from the fight to pass tax reform, President Trump has said that increasing spending on infrastructure (e.g. airports, railways) is now a major priority, although this may face resistance in Congress. While increased government spending could hurt the economy in the long term, the immediate economic benefit of a major spending package would likely be significant – providing yet another boost to companies’ profits and, therefore, an argument for even higher stock prices.
Originally posted as part of the Finimize daily email.
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