[Market Outlook] Tax Reform Sets Grandpa Russell (IWM) On Fire

The Trump administration pivoted away from another failed attempt at repealing the Affordable Care Act (Obamacare) and moved on to the next big item on its agenda, tax reform. Markets have started moving ahead of anything formal being agreed upon on Capitol Hill, so it’s a classic “buy the rumor and sell the news” situation developing.

The sell the news moment of course could be that nothing much comes out of the bill or that it’s watered down. Regardless, any reduction on taxes on the corporate level should have the biggest relative benefit to smaller US based companies that comprise of the IWM, hence most likely the main reason for the nice pop.

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