Stocks Unfazed by Attacks in France
It is all too familiar. Another atrocity perpetrated on innocent victims, revelers enjoying a glorious holiday in one of the most beautiful places on Earth. Even more disturbing, last week’s attack in Nice on the French Riviera, which claimed at least 84 lives, added to the seemingly ever-growing list of acts of terrorism.
U.S. politics are lining up for greater fiscal stimulus. Veteran Washington watcher Greg Valliere thinks that with the federal deficit at an easily financed 3% of gross domestic product, there’s a window for tax cuts—plus tax reform—in 2017-18. That is, before “the end of the decade, when demographic changes will begin to drive red ink sharply higher.
“The only palatable way to keep long-term deficits in check is higher GDP growth—not meat-ax spending cuts or tax hikes,” asserts Valliere, the chief strategist for Horizon Investments. As to who the next occupant of the White House will be, he equates dismissing Donald Trump’s chances with confident predictions that the British would reject Brexit.