Seen from Wall Street, the Trump presidency is going perfectly.
Travel ban troubles? Whatever. Russian revelations? Meh. Staffing woes? Who cares. Stocks continue to shrug it all off and rocket to new highs on the promise of big tax cuts, infrastructure spending and mass deregulation.
But analysts now caution that Trumphoria in the stock market could soon crash into a harsh Washington reality.
Before even getting to tax reform — where there is little agreement on the way forward — Republicans have to figure out how to repeal and replace Obamacare, win confirmation for a Supreme Court justice and deal with Democrats eager to slam the brakes on anything and everything President Donald Trump tries to do.
The result could be that a frothy stock market Trump derided as a “big fat bubble” before the election — but now takes credit for — suddenly plummets back to Earth.
“The stock market is completely wrong,” said Douglas Kass of hedge fund Seabreeze Partners. “My view is that the fiscal path and regulatory reforms coming out of Washington and the new administration are likely to provide a lesser and later contribution to economic and profit growth than the consensus expects. I don’t think it should be friendly to the markets.”
So far that view is losing — big league — on Wall Street.