No-one should be surprised that one of America’s top businessmen would do a great job at improving the economy, but few people thought the results would be this good.
Ivanka Trump tweeted the following sentence straight out of the New York Post, “@realDonaldTrump stock market rally is close to becoming the greatest in 85 years.”
It seems that the markets have never felt more confident under Trump’s presidency, in contrast to the media’s depiction of him as an incompetent ignoramus. With the Dow Jones Industrial average climbing 24.7 percent since his election day, this prodigious sign of investor enthusiasm comes in large part due to his business-friendly policies – tax cuts, reducing regulations, and bringing back manufacturing to this country.
The last president to have had a stock market gain this large was FDR, who was elected just as the US just started to recover from the Great Depression, which had a 54.9 percent increase in that year.
Nor is it just the markets that are expressing enthusiasm at the direction this country is going. Confidence among businesses and business owners is at a record high, something that Trump would mention. “Business is looking better than ever with business enthusiasm at record levels. Stock Market at an all-time high. That doesn’t just happen!” he tweeted.
The Dow Jones isn’t the only index to see massive growth. The S&P 500 rose 19.2 percent, and the NASDAQ surged 26.9 percent since Trump’s election. With some economic analysts predicting a three-plus percent growth in the American economy once the tax plan comes into effect, it would be the first year the country had such economic growth in a long time.
To put that figure into perspective, the US didn’t have a single year with three percent growth when President Obama was in office.
Overall, the US stock market gained over $4 trillion in wealth since Donald Trump got elected into the White House, along with breaking numerous records related to stock market growth. It’s a stark contrast to the previous administration, in which the first few months of Obama’s term saw the markets plunge over 31 percent.
Whether or not this lackluster economic performance can be solely attributed to the 2007-2008 subprime mortgage crisis is uncertain, but even throughout his entire first four years in office, the markets didn’t reach any new highs at all.
Anti-Trump analysts and economists are quick to try and discredit any correlation between this unexpected market rise and the President. “When I think back on the whole year, the forecast versus the fulfillment, I don’t think the Trump administration has done anything,” said Sam Stovall, an analyst at CFRA. “Other than maybe reduce a couple of regulations, or at least lower the bar on regulation, nothing’s happened.”
Morgan Stanley’s investment management team said that Trump’s effect on this market surge is “very modest negative, but largely not relevant,” and that instead, the rise was all about “the earnings recovery.”
The stock market has increased under President Trump’s administration. Do you support his economic plan?
Another stock market indicator, the VIX (also known as the CBOE Volatility Index), serves to measure Wall Street’s level of fear and apprehension. With the indicator at its lowest point in history, it’s clear that investors are feeling more secure than ever.
Whether they like it or not, analysts can’t deny the remarkable gains the market has made ever since this new President has come into office. It’s obviously not a coincidence.