Prediction: The Trump Bull Market Will Soon End -- and the Federal Reserve Will Be the Surprise Culprit
The Motley Fool • • business
Key Points:
- During Donald Trump's first term, major stock indices surged significantly, with the Dow Jones up 57%, S&P 500 up 70%, and Nasdaq soaring 142%, continuing strong gains into his second term starting in 2025.
- The Trump bull market has been driven by technological advancements like AI and quantum computing, alongside policies such as the Tax Cuts and Jobs Act, which lowered corporate tax rates and spurred record share buybacks.
- Despite this growth, challenges loom, particularly due to Federal Reserve uncertainty marked by internal dissent, potential interest rate hikes, and a pending leadership change that could disrupt monetary policy and impact borrowing costs.
- Historically, bear markets tend to be shorter and driven by investor emotions, while bull markets last significantly longer;
