Stocks close higher, Trump tax cuts: Market Domination Overtime

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Losing Streak,President Joe Biden,Manufacturing Plant

All three of the major market averages (^GSPC, ^DJI, ^IXIC) ended Monday's session in the green, with the Dow Jones Industrial Average snapping its losing...

) ended Monday's session in the green, with the Dow Jones Industrial Average snapping its losing streak and rising by almost half a percent. It continues to fuel the bullish sentiment with multiple financial firms raisingTrump-era tax cuts due to expire in late 2025 could take center stage this election, as both leading candidates — sitting President Joe Biden and former President Donald Trump — say they are willing to extend the deadline.

It is the 30th new high of the year for the S and P and some may consider taking some cash off the table, but our next guest says it's important to stay invested. We'll get to that in a second, I think right now, the next 3 to 4 months, it's all gonna be about this immaculate disinflation narrative.Once you start to see some relief, once it looks like the fed is gonna get to that cut, it tends to be very profitable.

Despite rising interest rates, I look at that subset of securities, you're up 75% since the rate hike cycle starts clearly rising rates, higher rates is not an issue for these names.But you also got to remember the other side, we still don't know what the the end game is gonna be when we have inflation coming down.They've been able to keep profits high because they've been increasing prices as prices have been going up.

I mean, we have seen some research that shows that the sort of premium that those names are getting though and that they're earning also may start to shrink here.I think it's certainly a possibility, longer term, especially when I look at a stock like NVIDIA is the assumption that they're gonna keep a 70% margin moving forward.So, I do, I do think you have to broaden the horizons a little bit, but in the short term again, where you have those risks on both sides.

And, and you know, in our view that is going to keep pressure up on interest rates, uh and, and you need to focused on that gonna be spending, it's gonna help keep the economy going, uh, in our view.And as we get closer we start to see what the polls look like.Well, that's a perfect segue here because as voters prepare for presidential debate season to kick off next week, one thing that will be top of mind for some Americans is expiring tax cuts.

Um That is probably the biggest policy issue looming that we know about and rick sticking with taxes, the IRS aiming to close a loophole used by some.We're not going to get into the details, but it has to do with how you depreciate assets. So, um if you feel like businesses uh are kind of like putting one over on the government and not paying their so called fair share, I think you want greater enforcement because this is, this is where the tax avoidance really is.

And one of the only limiting factors has been supply, one of the limiting factors has been parts of the supply chain so that yes, the supply chain is the problem.They're talking about one part of that, which is the injectable pens.So this specific plant is going to be helping with the relief on those injectable pens.It's something still as a next year timeline, we did get a chance to look inside.They're looking at how to make it more efficient faster.

We know of course the parent uh holdings company did acquire Catalan or is it trying to acquire Catalan manufacturing plant? So it's good to see you and get your take on all things housing it, it feels lance like some of the same big trends are in play here.But you know, on the other hand, affordability is still an issue for a lot of folks.And we are in one of the periods with the fastest uh affordability strain ever in terms of going from 2021 to now.And that rate shock at the end going from 3% to 4% to 5% to 6% to 7% really just strained affordability.

And so some of the part, people coming into the market at this point, they've just come in with higher expectations than they should have. Those people who were, you know, on the sidelines didn't want to give up their three or four for seven maybe as we get down closer to six or if we could get into the high fives, they might be like, you know what it's time to make the move.Uh we've been hearing for two years that any time now, you know, within a few months, mortgage rates are going to come back in and it just hasn't happened.

Home is reporting second quarter earnings after the bell and I expect the home builders to expand home orders by about 20%.

 

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