March 6, 2017
President Trump’s first 30 days in office ushered in the biggest market returns under any president in more than 100 years. During that month, the Dow Jones Industrial Average made its largest gains since President Taft’s first 30 days in 1909.
Now, I realize the president doesn’t directly impact the stock market. But the current president could be the exception to that rule.
The Dow returns could be reflecting the promise of a Trump presidency in the business community’s eyes. Thus far the president’s tax cut plans have been well-received, as have his ideas on rolling back regulations.
It seems clear the market loves the rhetoric coming out of Washington, New York, Florida and Twitter!
But it will soon be time when President Trump has to follow through on his words. The Affordable Care Act must be repealed and replaced. Taxes must be cut. And job creation must go into overdrive – along with a number of other priorities.
If it happens, we should all be better off, according to President Trump. If it doesn’t happen this year, I have to imagine there will be a market correction. It could be severe too, as the market is behaving oddly.
I am cautiously optimistic President Trump can deliver in a timely fashion. If he does, it should maintain or even increase future Dow returns.