One of the oft spoken phrases by Democrats was that Trump would create a financial meltdown if he took office. But even a year before he began running and during his first days of campaign, Trump emphasized that the financial meltdown was not his manipulation and an answering horror by the stock market but the result of mismanagement and poor understanding of economics by the Democrats in office or their behind-the-scenes manipulators pulling strings to create the crash in order to get richer. They seem at this point to have gotten this wrong as well though it is a bit too early to tell.
Gallup: Economic Confidence Surges After Trump Beats Hillary for White House
By F McGuire
Nov. 15, 2016
Gallup’s Economic Confidence Index soared 13 points last week to turn positive for the first time since March 2015 in the wake of Donald Trump’s White House victory.
Gallup’s Economic Confidence Index moved from a slightly negative evaluation (-10) to a slightly positive one (+3). The index had been consistently negative throughout the year leading up to the election.
The increase in economic confidence mostly stems from Republicans’ more positive views after Trump won the election. Gallup has previously noted that Americans view the economy through a political lens. Republicans have had a dismal view of the economy — especially of its future direction — during Democratic President Barack Obama’s two terms.
“After Trump won last week’s election, Republicans and Republican-leaning independents now have a much more optimistic view of the U.S. economy’s outlook than they did before the election. Just 16% of Republicans said the economy was getting better in the week before the election, while 81% said it was getting worse. Since the election, 49% say it is getting better and 44% worse,” Gallup reported.
“Conversely, Democrats and Democratic-leaning independents’ confidence in the economy plummeted after the election. Before the election, 61% of Democrats said the economy was getting better and 35% worse. Now, Democrats are evenly divided, with 46% saying it is getting better and 47% saying it is getting worse.”
The index is the average of two components: how Americans rate current economic conditions and whether they feel the economy is improving or getting worse. The index has a theoretical maximum of +100 if all Americans were to say the economy is doing well and improving, and a theoretical minimum of -100 if all Americans were to say the economy is doing poorly and getting worse.
The index has registered positive only a handful of times over the nine years Gallup has tracked it daily — the most recent being March 2015. For the week of Nov. 7-13, including two pre-election and five post-election days of interviewing, the index averaged 0.
Meanwhile, Wall Street investors were still cautious about how Trump’s policies would compare to his campaign promises and were also keeping an eye on key appointments in his administration, Reuters reported.
“Last week’s rally was basically a digestion of Trump’s win and now that we’re past the digestion phase, the market is taking a bit of a breather and is waiting to see what lies ahead under a Republican government,” said Mark Watkins, regional investment manager at the Private Client Group at U.S. Bank in Park City, Utah.
Market Watch – “What President-elect Trump means for every U.S. industry” – November 17, 2016
Market Watch – “Dollar index hits 13-year high as post election rally continues” – November 16, 2016
USA Today – “Stocks mixed: Dow closes at record high, Nasdaq falls; bond yields jump”
Marley Jay, The Associated Press, November 14, 2016
FoxBusiness – ” Letter to Trump – Executives Heal America “- Liz Claman – November 9, 2016
This Is Money – “What will the US election result mean for UK investors? Markets plunge into red at prospect of President Trump” updated Nov. 7, 2014
Not for the first time, lefties have miscalculated the effect of a Trump election. Can the stock market sustain a positive effect? Only time and Trump’s actions will tell. However, the FED is thought to be considering raising interest rates in December which may put a spike in the railway just as in the EU there is also talk of raising interest rates. For now the optimism of the republican financial sector may have averted a serious market decline which had been forecast almost a year ago.