The Market booms

During the recent election it was forecast that if Hillary Clinton won, the US stock market would first go up and then drop precipitously.  But, if Trump won, it was forecast that the opposite would happen, the market would first drop and then go up significantly.

The reasons given were that Clinton was a known politician and people would have some confidence in her governing, but after her spending on more entitlements increased (as with Obama) then the market would suffer.  But, with Trump, the initial decrease would be due to lack of confidence in his experience in government, yet his pro-market business approach would subsequently lead to a market rise.

Well, Trump, as you know, won, and the predicted has happened.  The market took a one day drop of over 800 points.  But, since then it has been gradually climbing, and as Trump has staffed his appointments with experienced businessmen, such a Treasury Secretary Steven Mnuchen, the market has risen sharply.  In fact, the market has risen to previously unknown heights, with the Dow Jones Index going over 19,000 points for the first time in history, and it is now approaching 20,000.

For anyone invested in the US market (or anywhere else) this is very good news.  Not only is the US market robust, but the US dollar has gained ground and is now stronger than for some time.  This increases the value of the US economy and as Trump promised, will help to make the US great again.  Everything else depends on a strong economy and Trump is fulfilling that pledge even before taking office.

 

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