The Dow just made history as it blew past its key level for the first time in its lifetime. The Dow went over 156 points on Wednesday bringing it to the record 20,069. The Dow began making its way to the incredible number when President Trump was officially nominated. Since then, it has grown a shocking 1,700 points.
This interesting move shows how optimistic investors are for the future economic growth of this country. Ed Yardeni, President of Yardeni Research, made a unique statement about the Dow in relation to the President:
“The stock market has given him this extraordinary vote of approval. Happy days are here again.”
Despite the many negative views on Trump, Wall Street clearly sees his potential. His plans to cut taxes and build more infrastructure in cities clearly makes investors believe America’s economic growth will skyrocket. In theory, this growth will accelerate corporate growth which is the heart of stock prices.
However, it’s not just the new president’s actions. Thanks to former President Obama, the U.S. continued to add jobs for the last 75 months and the unemployment rate has been at an all-time 10-year low.
Another reason for the success we’re seeing today is a change in the economy that occurred over the past eight years. According to CNN:
“The index crashed to a low of 6,440 in March 2009 as Wall Street feared a complete collapse of the American financial system.
The astounding 13,500-point rise since then has been fueled by a consistent, albeit imperfect, economic recovery combined with the U.S. central bank’s massive stimulus program and near-0% interest rates.
While the economic rebound from the Great Recession has been slower than many hoped, the unemployment rate is now at the lowest level since 2007 and corporate profits have climbed to record highs.
The economy has come a long way in eight years. Overall, it’s a healthier economy and does justify a much higher stock market than eight years ago,” said David Kelly, chief global strategist at JPMorgan Funds.”
From the looks of it, President Trump is at least making the investors and stock owners happy!