The Left love to hate Donald Trump, but they can’t deny his success. They predicted and hoped that Trump would bring doom to America, and he certainly has.
To Leftist America.
If you invested in Hillary Clinton, Barack Obama, or Leftism in general, then sell it short. Obama wanted to be the president who got the market to that milestone. He certainly printed trillions to make it happen, but he fell short.
Since the Leftist prophets of doom called Trump the destroyer, the stock market has mostly risen. Post-election, stocks have been rising, and flirted with the 20,000 mark.
I’m sure many Leftists hoped Obama would be the one to “break through” that barrier, but it was not to be. The Dow waited for the billionaire businessman, to show who IT voted for.
On Tuesday, both the Nasdaq and the S&P 500 closed with records highs. Thus it should come as no surprise that the Dow Jones Industrial Average crossed 20,000 for the first time ever.
The Trump Factor: Dow Over 20K
In 2015, the federal regulatory costs reached $1.885 trillion. Government bureaucracy is a business to itself. But no longer, as Trump has already proven that he will remove roadblocks to business.
There can be no doubt that President Trump’s next step will be to bring back trillions of dollars to the economy, when he lowers taxes.
And his first Executive Order on ObamaCare gave businesses and individuals breathing room.
Announcements on trade have specifically impacted the markets, as President Trump made it clear that he will value American jobs and taxpayers first.
His actions were so provocative, the president of the Teamsters actually complimented him. Whose to say how much this impacted investors, but it certainly didn’t hurt.
Trump: A Man of His Word
The good thing about being a successful billionaire turned president is you have lots of things going for you.
Of course there is the wealth. But the real attributes are you have learned to ignore most of the noise. Trump has a vision and a mission, and he will execute both, like it or not.
Most people appear to like it. The market certainly does.
As Fox News reports: Trump’s meetings with business leaders, especially the leaders of the big 3 in the automotive industry, have created an upward trend.
Trump’s fiscal policies, though, are just one piece of the 2017 market puzzle. With expectations of added stimulus from Washington, policymakers down the road from the White House at the Federal Reserve are calculating the pace at which the short-term federal funds rate will need to increase to keep up with a growing economy while also not allowing it to overheat. The Fed in December said it expects three 0.25 percentage point rate increases this year, which it believes will allow inflation to move closer to the 2% target while the job-creation rate remains steady.
In that environment, investors may stand to benefit from putting more weight on cyclical stocks including financials, energy, consumer discretionary and real estate, rather than in defensive sectors that include health care and utilities.
Wall Street is abuzz with the growth the new administration brings to the table. Trump knows how to put the money where his mouth is. He may not give speeches like a $5,000 a night call girl, as his predecessor does. Trump’s actions however, remind me of the goose that laid the golden eggs.