PHILADELPHIA (CBS) – Cable business news host Maria Bartiromo believes Donald Trump is responsible for the Dow Jones Industrial Average cresting 20,000 for the first time in history, telling Rich Zeoli on Talk Radio 1210 WPHT that businesses are eager see him cut the amount of bureaucracy they must deal with.
“A Trump bump means Trump’s policies, so he’s, basically, proposing that we are going to roll back regulations. A lot of these companies, certainly in the financial services industries, they have been hammered by regulation. In the last five or six years, they have been spending all of their time, money, energy on things like compliance, things like regulation, things like fees around those two things. For the first time in a long time, now these companies are saying, wow, the shackles are coming off.”
Bartiromo said the market surge indicates the economy will continue to grow and business will earn more.
“One of the reasons it is so important is that it reflects an expectation of things getting better. Oftentimes, you see the market trade for different reasons, whether it’s short covering or hedge funds, different reasons. This reason is based on fundamentals. That’s why this is such an important market rally because there is an expectation that the policies coming out of the Trump administration will actually impact corporate earnings. That is what moves the stock market, corporate earnings.”
She thinks corporate America is solidly behind Trump’s fiscal policy and expects to see the numbers keep moving up.
“People are looking at policies such lower taxes, the 15 percent corporate tax rate as well as a rollback in regulations, where were going to see Obamacare repealed and replaced. We’re going to see Dodd-Frank look different, the financial legislation and they’re saying, you know what, this is going to move the needle on economic growth. That’s really what’s behind this rally.”