After ringing the opening bell at the New York Stock Exchange on Thursday, President-elect Donald Trump refrained from telling investors to buy more stock as he prepares to take office.
“I don’t want to get into a situation where they do and we have a dip or something because that can always happen,” Trump said to CNBC’s Jim Cramer during “Squawk on the Street.”
Throughout his first term, Trump used the stock market as a performance barometer. The S&P 500+ experienced a 68% increase, reaching all-time highs. Part of this was due to corporate tax cuts enacted by the administration at the time.
The Federal Reserve also kept interest rates close to historical lows at the time in order to stimulate inflation and thus boost stock prices.
On Thursday, he touted the possibility of lowering taxes again. He said, “We’re going to cut taxes even further.” “If you do not build here, you will have to pay 21%. If you choose to build in the United States, we will strive to reduce the fee to 15%.
Wall Street CEOs and investors, including David Solomon of Goldman Sachs and Bill Ackman of Pershing Square, gathered at the New York Stock Exchange for Trump’s bell-ringing ceremony.
Ackman indicated to CNBC that “most of the country understands that the more successful businesses are, the more the stock market goes up, the more that their wages rise, the more job growth, the more opportunity, the more businesses that come to this country, it lifts all boats.”
While Trump avoided telling investors to buy stocks right now, he did maintain a bullish long-term outlook.
“I believe that in the long run, this country will be unique. After receiving Time Magazine’s “Person of the Year” title, he said, “We had the three best years ever until Covid happened.”