Lates News

Gene Goldman, Chief Investment Officer of Cetera Investment Management, expressed his approval of the passing of the "big and beautiful" bill, stating that the bill provides clear benefits for businesses and families, which often support corporate profits and stock prices. We will overlook the fact that the Congressional Budget Office estimates that the bill will increase the national debt by approximately $3 to $3.4 trillion over the next decade. This may necessitate larger government bond issuances, which has already sparked caution in the bond market as evidenced by rising bond yields. Additionally, these higher deficits may raise inflation expectations. From a stock industry perspective, it is expected that cyclical industries will benefit, especially energy companies (due to the cancellation of green energy subsidies), industrial companies (due to increased infrastructure spending), the financial industry (due to reduced uncertainty, widespread regulatory easing, and steepening yield curves), and the consumer goods industry (due to lower taxes).