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The Tell: Here’s why Trump’s cash repatriation plan could spell trouble for the S&P 500

President-elect Donald Trump’s call for a one-time tax cut on cash that U.S. firms bring home from abroad could ultimately be bearish for large-cap U.S. stocks, according to Société Générale analysts.

As always, the devil is in the details.

Since Donald Trump’s Nov. 8 presidential election victory, stock investors have bet that fiscal stimulus, consisting mostly of tax cuts, will crank up economic growth, helping to send major stock indexes, including the large-cap S&P 500 SPX, -0.27% to all-time highs.

Investors are also betting that a corporate tax overhaul would include a one-time holiday that encourage firms to bring back home hundreds of billion of dollars in cash currently held overseas in exchange for a lower tax rate.

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