Tax plan variations by Trump might help Penny Stocks to grow
Fund managers look forward to the political variations in the US for determining the status of penny stocks. These mini stocks are very risky and hence, people are willing to purchase them according to the new policies floated by the government. The approach of Democrats and Republicans has always varied and the economic growth has been dependent on the government laws.
Donald Trump, the US President, has initiated many rules related to corporate tax cuts and the upcoming days are bright in the sense of building economical strength by giving an opportunity to the new companies to implement their business ideas. Tax reforming would be a huge change in economic perspective and it would make an increase in the trade restrictions. America is thinking about the stability of the international economic growth which would benefit its people as well as indirectly have an impact on the other market states.
The large technology stocks have good prospects but the penny stocks would benefit from the small capital strategies encouraged by the government. The companies will have to expose their worth and the monetary terms have to be made clear. It would leave a positive mark for the penny stock purchasers who will have least risks involved in the investment. There will be more money in the corporations and the consumers due to the transparency in the structure of the mini stocks. US market has done great in the Democratic phase and the Presidency rules in the present times also reveal a great structure for the US global economy.
The US economy has been growing rapidly in the last three years. In October 2017, there was a global economic growth rate of about 4% anticipated in 2018 by the International Monetary Fund. This kind of statement was not being given from the year 2010. Penny stocks would outpace the market in the upcoming year as the Federal Reserve increased the rate of interest and the capital expenditures of the corporations began to increase.
Republican legislative were of a point of view that the small-cap stocks, defense, and infrastructure would improve in the reign of Trump and some part of it seems true. With the legalization of Marijuana in some US states, it has been observed that there is a scope in a few mini stocks. The position of US dollar is the highest at the present times. Even the fund managers are making sure that the small companies get benefits even if there are no legislations implemented by the Republicans in Congress.
Tax plan will be a legislative victory for the Republicans and there will be regulations made to benefit the corporate segment. Penny stocks purchased wisely do have a future. Their existence on OTCBB or pink sheets made them unsecured. However, the new policies might be assistive to the real companies looking for fund collection from the public. It is ultimately the need for the investors to check the analysis and find the right moves in terms of their investment in micro-cap segment.