In This Article:
Infrastructure Capital Advisors has set a 7,000 price target for the S&P 500 by the end of 2025. CEO Jay Hatfield joins Market Domination Overtime to discuss why he believes tax cuts will be a primary driver of this forecast.
"Cutting corporate taxes is great for corporations," Hatfield notes, emphasizing that this will be beneficial for earnings and, subsequently, the market. "If it weren't for corporate tax cuts... we would just be in line with the street," he adds, highlighting their alternative target of 6,500 to 6,600.
Hatfield argues that what most investors overlook is that the proposed tax strategy would generate proceeds "basically a partial VAT [value-added tax]," which he believes is excellent for long-term growth. He contends that this approach "doesn't really increase inflation from a technical perspective" and will ultimately be a "positive" for the S&P in the long term.
To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here.
Related Videos
This post was written by Angel Smith