Just before Christmas, President Trump signed the Tax Bill which he believes will make America Great Again. It may, but not likely for the effect on those below $80,000 income is marginal at best. Now for the wealthiest people, they have more to invest in the market and for corporations they will pay less tax. The money the corporations do not pay will eventually go to shareholders through dividends and share purchase plans. Very little will trickle down, not with standing the above criticism the largest banks in the country are receiving a massive Christmas gift.

It is expected the Earnings per Share will climb anywhere from 8 to 17% according to research by Citigroup Global Markets Inc. The benefits come from both domestic operations as well as lower repatriation rates for cash held abroad. The major reason for the additional increased in EPS is the corporate tax rate fell from 35% to 21%. However, ever since 2009, the banks have been complaining about regulations (which were to designed to ensure the banks did not fail), they thought they needed less of them. The tax bill does lower some of the ratios so the banks can lend more money.

Linking to dividend paying stocks, except for when the economy meltdown in 2008, the banks are dependable dividend payers and if you do not own them individually an ETF which owns the major banks is a good thing to own .President Trump has been good for the big banks and as long as he is President it is a good holding.

There are more questions than answers, till the next time – to raising questions.