The Financial Post reports in its Tuesday, edition that skittish investors are still waiting for the sky to fall on surging U.S. stocks. The Post's Geoff Zochodne writes that a push for tax cuts by President Donald Trump could fuel a further run. The S&P 500 is up about 15 per cent for the year. Last week marked 16 months since the last 5-per-cent S&P 500 drawdown, the fourth-longest streak in its history and well above the historical average of 92 trading days without that size of a slip, according to Goldman Sachs.
The rise of those U.S. equities, though, has some investors bracing for a correction. Canaccord Genuity said Monday: "Like everyone else on the planet, we keep looking for indications for what could go wrong. Sorry folks, but the only thing we can come up with is -- there is nothing we can come up with."
Analysts, however, are paying attention to the improving odds of corporate tax cuts in the U.S.
The Trump administration scored a win of sorts last week, when the U.S. Senate passed the $4-trillion (U.S.) budget plan, positioning the Republican-dominated Congress to take a run at cutting taxes.
Markets were high Monday on hopes that Mr. Trump's tax plans may come to fruition.
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