STOCK MARKET HITS 20K-TRUMP’S BEST RALLY YET
Founded February 16, 1885, Dow Jones Industrial Average has been at the center of the financial world, in good times and bad. At no point in our nation’s history has the stock market achieved the 20k mark, until now. Pundits and experts alike said in unison, “NO CHANCE”. We have a pattern here folks. No chance Donald runs for President. No chance Donald tops 15% in primary polls. No chance Donald becomes the Republican nominee. No chance Donald wins the general election. No chance, no chance, no chance. To quote President Trump, “Wrong.”
Up until now, conventional political wisdom was a safe bet. Enter Donald J Trump and the nationalist movement he leads. DOW 20k is a win for America and a win for the stock markets. This much is certain; a reaction like this has never been seen before.
Investors typically don’t like change, shouting “status quo is the way to go!”. A Clinton administration was a safe bet in terms of stock market stability. While the same may have not been true in trade, or at the border, investors would approve of Madam President. Maybe its time to admit that the unexpected should be expected in a Trump presidency. Conventional wisdom be damned.
If logic holds up, a successful businessman as the CEO of America should bring gains and a positive outlook on an otherwise bleak future.Trump in general financial terms was a wild card, seen as unpredictable. The stock market soared, confidence levels sky rocketed. Enter DJT and a new team in the Oval Office. Who could have predicted this?
According to William Watts of Market Watch, “a stock market performance during a presidential administration is to some extent of matter of timing”. While this is usually true, the rally towards 20K took a major bump after the election of POTUS 45. That’s all on Trump.
Looking at the price performance of the S&P 500, Trump gained 5.5% between November 8th-December 12th. According to Bloomberg and S&P global, the Trump rally was 3rd best all time, behind Eisenhower’52 and Bush’04. Bush Push, as it was called, is the best rally all time, according to Market Watch. While Bush was a republican, he wasn’t a great hero to all those in true conservative circles. Expansion of government and a mess of conflicts sealed Bush’04 and his fate.
This time it is different. Trump is a nationalist President operating under the Republican banner. Protectionist trade polices will be pursued, while “America First” will be a hardened theme during this administration.
The Trump Bump, as its being called, certainly wont stay forever. However, with smart trade deals, renewed motivation among the workforce, and less regulation, a strong economy is more than likely. Here’s to hope and real change. And lots of smiles too.