BUFFALO, N.Y. -- Despite dire predictions about the impact of a Trump presidency, the stock market is actually seeing gains well before Trump is officially sworn in.
Mike Lomas, president of the Financial Guys, is referring to this as the "Trump Bump."
"I think what is happening now, really when we're talking about a 'Trump Bump,' what we're talking about is the fact that hopefully he's going to lower taxes. Hopefully he is going to get rid of the massive amounts of regulations," said Lomas.
He thinks there has been over-regulation of corporations and businesses that has stifled economic growth over the past eight years. Lomas also believes Trumps promise to cut taxes across the board will boost the economy.
"If he does that, we're going to put more money back into the economy, and it doesn't have that government filter. It'll go back. People will buy pizzas; they'll buy the things that they want to buy, whether it’s a new outfit, whether it's taking their family out to dinner, whether it's the new hot tub they were looking for. That's a stimulus to the economy," said Lomas.
Buffalo State political science professor Anthony Neal says the idea that a tax break for corporations will stimulate economic growth does not always pay out.
"Yes, we look at when the market responds positively, but that doesn't mean that the benefits will trickle down to the everyday working person in terms of income," said Buffalo State political science professor Anthony Neal. "All one needs to do is take a brief look at history, particularly with the Bush administration which came in with massive tax cuts and near the end of the Bush Administration, we were headed into or we did head into the Great Recession."
Now, it remains to be seen whether the Trump Bump will be enough to keep pushing the economy in the right direction after his inauguration.