One of the first things I shared with you at the onset of our 10-Minute Millionaire journey is the importance of narrative – the overarching theme that propels the market.
And in the stock market, the current narrative is this: Investors have been optimistic – even confident – that the Trump administration and the Republican-led Congress will be successfully in achieving their “Big Three” initiatives:
- Cutting taxes – indeed, reforming the U.S. tax system.
- Slashing regulation – in effect, cutting costs for Corporate America while giving U.S. companies more room to maneuver.
- And boosting spending on infrastructure – a $1 trillion spending program that will fix the country’s roads, bridges and water systems, while creating jobs and giving the economy a needed jump.
Any news that supports this narrative causes stocks to rally. And any developments that threatens this confidence causes share prices to stumble.
Now there’s no denying that the Trump Administration has its fair share of “scare headlines” recently.
In the past few months, the Trump presidency has been hit with…
- Fallout from firing the former FBI Director, James Comey
- Republican “failure” to overhaul Obamacare
- New revelations coming out of the alleged Trump campaign ties to Russia
- And increasing worries over a possible impeachment.
Recently, many of the “pundits” have been quick to claim that recent Trump Administration “blunders” represent a change to the narrative.
But it’s just not true.
In fact, it’s just the opposite.