BAML: Don't Expect Trump Tax Cuts To Impact Markets Immediately

As Congressional Republicans are preparing an “extravaganza” of Trump tax cuts, a pair of Bank of America Merrill Lynch economists say that “cutting taxes could be taxing” as they warn markets might be getting ahead of their skies on fiscal stimulus. Some analysts have estimated Trump tax cuts could add $180 billion to the S&P 500. Trump tax cuts are not likely to happen quickly Markets appear to be riding high on a “Trumped rally,” expectant that Trump tax cuts and fiscal stimulus will spread gifts to market participants and propel an already highly valued market in the late stages…