Once President Donald Trump passes several of his pro-business proposals, financials and real estate stocks will rise, BGC Partners Chairman and CEO Howard Lutnick told CNBC on Thursday.
Lutnick, also chairman and CEO of financial services firm Cantor Fitzgerald, said he is confident Senate Republicans can accomplish the “difficult task” of passing a new health bill. Afterward, Trump will impose tax and regulatory reform, he said.
“You had this regulatory overhang of negativity in the past, and now you have a view of positivity in the future,” Lutnick said on “Squawk on the Street.” “You’re going to see the financial have a nice bump coming. … It’s going to come.”
Lutnick also predicts the Trump administration will get rid of the Volcker Rule, which will help financials. The rule restricts U.S. banks from making certain kinds of speculative investments with their own money that could hurt their customers.
He continued to say, “What people really haven’t thought about with real estate, is if you get tax reform, you’re going to see real estate now … the velocity of selling and buying real estate will just kick.”
The overall U.S. market has been on the rise since Trump was elected. The Dow, S&P 500, and Nasdaq were all coming off record closing highs Thursday after strong earnings.
As of Wednesday’s close, the Dow has surged more than 18 percent, the S&P 500 has gained 15 percent and the Nasdaq composite has risen 23 percent since the election.
Senate Republicans still have an uphill battle to pass a health-care bill. A plan to repeal and replace Obamacare that Senate Republicans have been working on for months failed to get the 60 votes needed for approval Tuesday night.