Analyst: Trump's bill will support the stock market and is optimistic about cyclical industries.

On July 4, Jin10 reported that Gene Goldman, Chief Investment Officer of Cetera Investment Management, commented on the passage of the “Big and Beautiful” bill: The bill provides clear benefits for businesses and families, which often support corporate profits and stock prices. We will ignore the fact that the Congressional Budget Office estimates this bill will add about $3 to $3.4 trillion in debt over the next decade. (The bill) may require a larger government bond issuance, which has already triggered caution in the bond market, as evidenced by rising bond yields. Additionally, these higher deficits could push up inflation expectations. From the stock sector perspective, cyclical industries are expected to benefit, particularly energy companies (removing green energy subsidies), industrial companies (increased infrastructure spending), the financial sector (reduced uncertainty, general deregulation, and a steepening yield curve), and the consumer goods sector (tax cuts).