Largest Bull On Road Sees Income, Tax Reform Using Subsequent Leg

Stocks with higher tax rates have seen their price-to-earnings multiples fall, while stocks with lower tax rates have seen their multiples rise, Wilson pointed out.
His 12-month forecast for the S&P 500 is 2,540, just over 3 percent above Friday’s close.
In addition to better earnings, Wilson expects clarity on tax reform will help stocks.
Once markets have clarity on what kind of tax reform may be implemented, the stock sectors with high tax rates will likely recover their gains, helping the overall index rise.
Accordingly, between the election and March 1 — a day after President Donald Trump’s surprisingly presidential speech to Congress — financials and industrials led S&P 500 advancers.

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