6 Reasons the Markets Love Trump
If you’re a politician, I couldn’t care less whether you put a D or an R after your name. I am a registered independent and I’ve voted for lots of Democrats, many Republicans and a handful of Libertarians.
What I care about is how good you are at your job.
Bill Clinton is a scoundrel, but he was a very effective president.
I don’t have a high opinion of Donald Trump either, but his list of economic accomplishments is impressive.
Accomplishment #1: Jobs Galore. The unemployment rate is at 3.5%, the lowest in five decades. And unemployment rates for women, blacks, Hispanics and Asians are at or near record lows. Approximately 160.1 million Americans have a job.
Accomplishment #2: Rising Wages. The strong jobs market has pushed wages higher. Over the last year, median wages up are 3.6%, but nonwhites and the bottom 25% of wage earners are doing even better: up 4.3% and 4.5%, respectively.
Accomplishment #3: Household Income Way Up. Median U.S. household income after eight years of George W. Bush was up a measly $401, or 0.7%, and after eight years of Obama it was up by $1,043, or 1.7%. In just three years of Trump, American households are pulling in an extra $5,070, or 8.3%. Impressive.
Accomplishment #4: Trump Tax Cuts. The Tax Cuts and Jobs Act cuts taxes for Americans by $1.5 trillion and chopped corporate taxes to 21%, a level consistent with most of the developed world. And don’t forget about the repatriation of $1 trillion in business profits previously sitting overseas.
Accomplishment #5: Massive Deregulation. Trump promised to cut two old regulations for every new one imposed, but has actually has killed off eight federal rules for every new one. I’m a big fan of less government in my life.
Accomplishment #6: America’s Energy Independence. Trump wasted no time in authorizing the Dakota Access and Keystone XL pipelines. This has made it easier and faster to pull energy out of the ground. For the first time since 1973, America is a net exporter of oil.
Notwithstanding the recent coronavirus fears, the stock market has been on fire since Trump was elected. He is the only president to see the Dow Jones Industrial Average surge by 11,000 points, which translates into a 50% increase in value since Trump’s inauguration.
And according to Trump, even bigger stock market gains are still ahead. “The best is yet to come,” tweeted Trump.
I’m not telling you this because I want you to vote for Trump. I’m telling you because, like me, the stock market doesn’t care what political party controls the White House. And there is no question in my mind that the stock market loves what Trump has done for American commerce.
Love him or hate him, the U.S. economy is the envy of the world and that’s why it is ultimately headed higher.
Here’s to growing your wealth,
Chief Income Expert, Mike Burnick’s Wealth Watch