Markets Try to Make Sense of Trump Tax Plan

The transcript discusses the initial reactions to a proposed tax plan, highlighting its framework nature and potential modifications once it reaches Congress. Market reactions were initially positive, with small cap stocks outperforming, but some pullback occurred as debates emerged. Experts provide insights into the policy's potential impact and the likelihood of it becoming legislation, noting that tax reform may find broader consensus in the US.

What was the initial reaction to the proposed tax plan regarding state and local tax deductions?

• Immediate implementation

• Backpedaling on deductions

• No changes proposed

• Complete acceptance

How did the market react to the announcement of the tax reform proposal?

• Indifference

• Negative reaction

• Complete rejection

• Robust positive reaction

Which type of stocks showed significant outperformance following the tax reform proposal?

• Large-cap stocks

• Small-cap stocks

• International stocks

• Technology stocks

What is the anticipated impact of the tax reform on small-cap stocks in the US?

• Main beneficiaries

• No impact

• Negative impact

• Minimal impact

What is the likelihood of finding a consensus for implementing the tax reform in the US?

• Very unlikely

• Impossible

• Somewhat likely

• Highly likely