The night of the election was sure an exciting time. The internet and news media on both sides were in absolute disarray. Clinton was expected to crush Trump, but things were tighter than expected. Paul Joseph Watson of Infowars was reporting on the fact mainstream media outlets were delaying publishing the exit poll results. In his British accent, he perfectly rose above and captured the poor frightened reporting of the mainstream media. This meant Trump was doing better than expected. The New York Times was keeping keeping a live percentage based on results of the reporting polls. Once Donald Trump passed 50%, it was a quick trip to 94%, then 100%. Donlad Trump had won. The other ones keeping live odds were stock traders. Once it was uncertain that Hillary Clinton would win, and that Donald Trump had a foot in the White House, overnight DOW Futures crashed 900 points (Note for those unaware: The stock market closes at 4:30 pm and opens at 9:30 am on weekdays, Futures are trades that happen when the market is closed, but do not go through until the market officially opens). The panic futures selling was cheered on by Trump supporters. A sadistic thing to cheer on, but their guy was finally in. And then, suddenly, Wall Street realized Trump wouldn’t be too bad. They didn’t like uncertainty because their predictions were wrong, but once they looked back Trump’s economics plans, they saw hope. And Dow Futures reversed, going up, and by market close on November 9th, the Dow Jones Industrial Average went up 257 points, with the Nasdaq and S&P 500 rising over 1% as well. That spurred a stock rally like never before, with the Dow passing 20,000 and then 21,000 since November 9th, adding $3.2 trillion in value to the stock market. President Trump proudly tweeted this, of course.
Since November 8th, Election Day, the Stock Market has posted $3.2 trillion in GAINS and consumer confidence is at a 15 year high. Jobs!
— Donald J. Trump (@realDonaldTrump) March 2, 2017
But many were quick to point out that under Obama’s presidency, the DOW grew around 10,000 points. Since November 8th, 2016, the DOW has gained nearly 3,000 points. A faster rate than Mr. Obama, but is Mr. Trump right to take all the credit for this impressive rally?
As much as I am a Trump supporter, I have to say no, Obama had a hand in this rally. Obama’s economy grew, at a slow rate. Obama holds the record for the first president to have an economy not reach 3% growth in his entire term. But investors were okay with consistency, we were getting somewhere positive. Obama inherited a crashing economy from Bush, and did well enough to stabilize it and cut defense spending (something Trump is now reversing). Now, what is good for the stock market is not always good for America. Companies were moving operations and money overseas, meaning better profits for them, but a burden on the US economy. Globalism would allow corporations to employ more low wage workers and expand sales into the developing world. American companies would grow and profit, the American economy would stay behind. It was a reality investors, politicians, and the American people were learning to accept.
In comes Donald Trump. A man who believes we can revive the American economy one last time, and keep a generation employed before automation and globalism take over. The economy, not just the stock market, responds well. Trump brings back jobs, using his seat as the most powerful man in the world as leverage to get companies to invest in the United States. Carrier, Exxon, Ford, among many others are adding jobs to the American economy. Executive orders and laws aimed at cutting taxes and regulations, including repeal and replacement of red-tape filled Obamacare, have been signed or are set to be signed before 2017 closes. This will take the shackles off of this strong economy. Peter Cortes, a commentator on Fox Business, was quoted on Varney & Co on March 3, 2017 as saying “The [American] economy is like a sprinter with a weighted jacket, and we are starting to strip off the weights.”
That is a perfect metaphor. Obama made a weak Bush economy into a sprinter, but handicapped it. Trump is taking off the handicap, allowing the sprinter to go. And go he is. Some predict that if Obamacare repeal and tax reform is passed quickly, the DOW will rise over 3,000 points immediately. Trump’s rally and Obama’s rally are both great gains in the stock market. Trump’s involves the economy growing and the stock market following the money, growing along with, while Obama’s involved a stock market that pulled the economy along. So when a left-wing pundit and a right-wing pundit are arguing over who is responsible for the growth in the stock market, show them this meme: