This is the first part in a three-part series adapted from the Ty J. Young Inc. webinar, “Investing in the Era of Trump.”

It’s been just more than a year since President Donald Trump was elected to the highest office of the United States of America. With the election of any new president, and now in the era of Trump, many investors are concerned about their money and what the stock market is doing. As election results rolled in last November, the stock market was down huge in anticipation of Donald Trump being elected president. In fact, many experts said that if Donald Trump got elected, our stock market would crash. Though it went down in the first few hours of his election, since then it has only gone up—and gone up big. Now, we see the stock market thriving.

Despite what many experts predicted, the stock market has gone up 23 percent since Donald Trump was elected president. Since President Trump was elected, there has been $5 trillion of wealth creation in the stock market—and it seems like it’s hitting a new high every day.

But why is the stock market thriving?

For one, we have a pro-business president—a fact that economists are saying will cause the stock market to continue its upward trend. Corporate tax is currently at 35 percent, which is one of the highest in the industrialized world. If we bring that down to 20 percent, it will in large part unleash business to spend more money, grow manufacturing facilities and hire more people. President Trump has brought back manufacturing in large part to the United States. More companies are committing to build manufacturing facilities right here in the U.S. because the Trump Administration has made it friendly for those companies to bring their manufacturing back. In addition:

  • Exports and imports are up
  • Consumer spending is up
  • Consumer confidence is up
  • Deregulation is occurring
  • Tax reform is expected
  • Unemployment is down
  • The GDP is up

When you put all of that together, our market is zooming up, and some people believe this will go on and on for years. Why?

Here’s what’s actually happening. Because of the government printing money and interest rates being artificially held at zero, the stock market has been artificially stimulated over the last five to eight years, causing it to move up. This wasn’t a result of fundamentals, but of artificial factors.

Since Donald Trump was elected, the fundamentals have started to come up to meet the market. Companies are earning more, and when they earn more, the fundamentals get better. Because of that, expert after expert believes the stock market thriving is a trend that will continue up and up.

Some people find it hard to believe that the stock market could continue to thrive in considering current events going on in the world. Tomorrow, we’ll answer the question, “Is the stock market immune to current events?”

For more investing insight, continue to follow Ty J. Young Inc.’s Retirement You Earned blog! To learn how you can capture stock market gains while avoiding stock market losses, call us today at 877-912-1919.
Posts from the Ty J. Young Inc. team of advisors and leaders. on on on on Twitter

Leave a Reply