BizVid Communications, your video production leader, predicts this season and the coming year to be among your company’s best, ever. All told, many businesses are optimistically expecting less government controls and more freedom. Furthermore, social media restrictions are promising less restraints. The stock market is now booming and there should be greater trade opportunities with other nations.
As part of our blogs, we take a look at what others are saying in the marketplace and blend them with the content of our point of view.
What others are saying.
According to Entrepreneur Magazine, (https://www.entrepreneur.com/business-news), Wall Street is “cheering” Trump’s triumph, per NPR, and is relieved by a “quick and undisputed election result,” according to USA Today.
The Dow Jones Industrial Average rose more than 3% Wednesday morning, and the Nasdaq and S&P 500 rose by 1.5% each, hitting record highs.
Shye Gilad, Professor of the Practice in Management at Georgetown’s McDonough School of Business, told Entrepreneur in an emailed statement that the election outcome “significantly” affects small businesses.
The Trump administration has proposed lowering the corporate tax rate from 21% to 15%.
“Under the new administration, the emphasis may be more on reducing taxes, deregulating industries, and implementing protectionist trade policies,” Gilad stated.
On trade, Trump proposed 10% to 20% tariffs on all imports and 60% to 100% tariffs on imports from China, stating that policies would create new jobs and help the American manufacturing industry. The National Retail Federation estimates that the tariffs would cost consumers $78 billion per year.
“While small business owners may welcome the new administration’s corporate tax rate cut, a protectionist trade approach, and a vow to eliminate the ACA could present costly, systemic problems that may outweigh the tax benefit,” Gilad wrote.
However, Bill Newlands, the CEO of Constellation Brands, a beer company known for the “Modelo”, Corona, and Pacifico brands, downplayed concerns about higher tariffs in a recent interview.
“We already had four years of a Trump administration, and our business was up double-digits during that window of time,” he stated.
According to US News, Chuck Mikolajczak of Reuters (https://www.usatoday.com/story/money/2024/11/06/) NEW YORK — U.S. stocks rallied sharply to close at record highs on Wednesday after Donald Trump’s presidential victory.
The Dow Industrials, S&P 500 and Nasdaq Composite each ended at record levels with investors expecting lower taxes, deregulation and a U.S. president who is not shy to weigh in on everything from the stock market to the dollar, although fresh tariffs could bring challenges in the form of a higher deficit and inflation.
The Republican’s win powered a rally in so-called “Trump trades,” sending U.S. Treasury yields sharply higher, with the benchmark 10-year note yield hitting a four-month high of 4.479%. Bitcoin hit a record high of over $75,000 and the dollar was on track for its biggest one-day percentage gain since September 2022…
The CBOE Volatility Index, also known as Wall Street’s “Fear Gauge,” dropped to a six-week low of 15.44.
The rate-sensitive real estate and utilities sectors were among the day’s few decliners as investors assessed the chances of Trump’s policies boosting inflation and altering the Federal Reserve’s path of interest rates, which has been a key component of Wall Street’s recent rally.
The central bank is widely expected to ease the benchmark interest rate by 25 basis points at its policy-setting meeting ending on Thursday. However, traders have begun to trim bets for a cut in December and the number of reductions expected next year, according to CME’s FedWatch.
Stocks viewed as likely to perform well under a second Trump term also advanced, with Trump Media & Technology Group in very volatile trading while Tesla leapt under CEO Elon Musk….
BizVid’s Summary.
In summary, regardless of political party affiliations, as well as unforeseen challenges, small businesses must take every opportunity to make the most of every situation. As BizVid’s followers have tracked our pro-business posture, through thick and thin, through Covid restrictions and other restraints hobbling small businesses through the years, we are always seeking out the best news to share with our friends in business. With America in a new political posture, we take the stance of making the best out of every situation. A few months from now, we will begin getting a more complete picture for your business success. For now, we trust that you will have your most winning winter ever.