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Tax Cuts Are the Dream Pushing a Market That Won't Stop Climbing

  • Analysts warn equities, 10-year bond overreacting to proposal
  • Lack of details, deficit hawk pressure curbs optimisim: BofA
Bloomberg business news

Libby Cantrill Says Tax Overhaul Is Only in Second Inning

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Market pessimists are warning investors to temper their exuberance over President Donald Trump’s proposed tax cuts.

Stocks raced to records last week, the dollar hit a two-month high and 10-year Treasury yields rose to a three-month peak after the administration and congressional leaders announced a framework that would lower the corporate tax rate. Now, a growing chorus of analysts sees a tax trade that’s gotten ahead of itself. And they’re voicing skepticism on whether the plan will become law anytime soon