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Wealth Management Wire
Investors May Want To Look At Sectors That Worked In The 1980s

Investors May Want To Look At Sectors That Worked In The 1980s

Look at policies focused on reducing the tax burden.

Subsequent to the election last month I published a post suggesting the equity market going forward was beginning to resemble the bull market of the 1950s and 1980s. A decade is a long time and market leadership will rotate in and out of sectors based on the business cycle. In that earlier post I noted the potential commonality to the current market compared to those prior decades related to policy decisions coming out of Washington, D.C.

In the 1950s the Gross National Product in the U.S. more than double from 1945 to 1960. Government spending in the 1950s was targeted at construction of the interstate highway system, building of schools and an increase in military spending. In the 1980s President Reagan's policies focused on reducing the tax burden on Americans, lowering government regulation and shrinking government itself. President Elect Donald Trump also projects to implement similar policies, i.e., reduce…

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