Due to investor optimism in the markets, much of which is driven by the intentions of Washington DC, the stock market has been growing at an exponential rate. The Dow has closed at record highs 42 times since Donald Trump was inaugurated. Research shows the Dow Jones climbing 3,304.26 points since President Trump was elected. The S&P500 has closed at record highs 33 times since the election thus adding 319.71 points to date. The Nasdaq however, did not get off to the same “jump start” as the Dow and S&P did. Despite the rocky start, they have shown tremendous growth to date adding a total of 1,118.98 points since the election.
Per Gallup, “The Wells Fargo/Gallup Investor and Retirement Optimism Index is a broad measure of U.S. investors’ outlook on their finances and the economy. The index measures investors’ views on their future income and investment performance, as well as their expectations for economic growth.” The index has provided these measures dating back to 1996. As of right now the index is showing a vast amount of confidence in the American economy and its future with the index securing a score of +126. To bring this into prospective, the last time the index showed such optimism was in 2000 when it was gauged at +130 during the dot-com boom.
Investor confidence is still up in light of the fact that they are not expecting to get a tax cut. In fact, according to Wells Fargo and Gallup, 39% of investors expect their tax rates to increase within the next few years.
In spite of the drama going on in Washington, confidence in The Commander in Chief is still extremely high. It leaves one making a very realistic observation here, President Donald Trump has delivered on his promise of being “great for business” while investors and 401K holders are clearly thinking the President is “making investing great again.”