Markets Dangerously Price in Perfection in Trump’s Era
Investor expectations for stronger corporate profits in light of looser regulations and lower taxes may prove overly optimistic
The stock-market rally since the election is a triumph of hope over experience.
Investors hope Republican control of both Congress and the White House will mean looser regulations, lower taxes and a stronger economy, boosting corporate profits and so the value of shares. Experience should tell them that hopes of far higher earnings blossom every...