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Close To $7 Trillion Gains In Stock Market Thanks To Trump Bump

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(Via CNBC)

The U.S. stock market has added nearly $6.9 trillion in market cap since President Donald Trump was elected, already close to half of what was added in all eight years of President Barack Obama’s tenure.


The market cap, based on the Russell 3000, surpassed $30 trillion for the first time last week and was at $30.6 trillion Thursday, according to Bespoke.


“I think the performance in the first year has exceeded almost everybody’s expectations,” said Paul Hickey, co-founder of Bespoke. Hickey uses the Russell 3000 to measure overall market cap, since it represents about 98 percent of all U.S. stocks.


When Trump was elected, stocks rose out of the gate after an initial late-night collapse in futures prices. After that, the market rewarded stocks and sectors that would benefit from the “Trump trade” and Trump’s pro-growth policies.


The Trump trade occasionally stalled out when it looked as though tax reform was unlikely, but since the legislation began seriously moving forward and finally became law at the end of last year, the market has been on a tear. The S&P 500 has added 4.6 percent just since the start of this year, after last year’s near 20 percent move.

Luke Sharrett/Bloomberg via Getty Images
The U.S. stock market has added nearly $6.9 trillion in market cap since President Donald Trump was elected, already close to half of what was added in all eight years of President Barack Obama’s tenure.


The market cap, based on the Russell 3000, surpassed $30 trillion for the first time last week and was at $30.6 trillion Thursday, according to Bespoke.


“I think the performance in the first year has exceeded almost everybody’s expectations,” said Paul Hickey, co-founder of Bespoke. Hickey uses the Russell 3000 to measure overall market cap, since it represents about 98 percent of all U.S. stocks.


When Trump was elected, stocks rose out of the gate after an initial late-night collapse in futures prices. After that, the market rewarded stocks and sectors that would benefit from the “Trump trade” and Trump’s pro-growth policies.


The Trump trade occasionally stalled out when it looked as though tax reform was unlikely, but since the legislation began seriously moving forward and finally became law at the end of last year, the market has been on a tear. The S&P 500 has added 4.6 percent just since the start of this year, after last year’s near 20 percent move.


Source: Bespoke


The market’s value may have reached peak levels since Trump’s election, but in percentage gains since inauguration, Obama was ahead in the first year. From his first inauguration until one year later, the S&P gained 41 percent under Obama. Hickey said the first-year average gain for first-term presidents since 1928 has been 13 percent.


Trump’s track record is still strong, he said. “As far as performance is concerned, it was a very good first year, seeing a gain of 23 percent in the S&P 500 in Trump’s first year in office,” said Hickey. “There were bigger gains under FDR and Obama, but they had the benefit of coming in at a low level, at the late stages of a bear market.”


Trump has not been shy about taking credit for a strong stock market, which some see as a risky prospect because stocks don’t always go up, as George W. Bush saw during his administration. The market lost $3.3 trillion in value in the Bush years, as measured by the Russell 3000, while it gained $12.3 trillion during the Obama administration.

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Culture

#AdiosAmerica: Republicans (with Democrats) Are Selling Out America to Corporations to Decrease Living Standards

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Since the turn of the 20th century, living standards became an important, almost central part to the progressive and labor movements of those times. Now it has become a mainstream of both parties to sell out your labor to lowest bidders in low and high paying jobs. Low paying jobs are being taken by low-wage immigrants protected by Democrats and the high-end jobs are brought in by bi-partisan means, and greatly boasted by Republicans.

This effort has crippled the middle-class for close to 30 years now and with the job market being already tightened by the looming threat of A.I., importing more workers, whether legal or illegal is decreasing the value of labor in America for each and American Citizen. Corporations and Businesses, who rely on keeping employee costs as low as possible generally don’t complain about these practices across the board, why would they?

Americans have an increasingly difficult task ahead of them with the mass illegal migration at the Southern Border but also the legal importation of immigrants through H1-b1 Visas. These challenges will increasingly change the look, heritage of this country. There is no incentive for either Government or Business to care about reigning in immigration to the benefit of the American worker, the bottom dollar line will look better anyways.

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Politics

Soros Newest Investor Of Tesla Bonds

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Tesla looks to have a new bond holder and it’s none other than George Soros. Whatever this mean, Soros has also taken a stake in Crypto-Currencies .

Zerohedge Reports: Amid Elon Musk’s darkest hour in late March – as his stocks and bonds tumbled in price – it seems there was at least one other billionaire willing to buy the ‘blood on the street’.

According to the latest 13Fs, George Soros’ investment firm took a $35 million stake in Tesla’s convertible bonds during the first three months of the year.

As a reminder, convertibles are hybrid securities, either bonds or preferred stock, that can be exchanged for a predetermined number of common shares. That effectively lets an investor participate in stock-price changes, but with the yield and greater security of a fixed-income instrument.

The March 2019 Converts bounced handsomely off those lows – tracking the stock’s divergent bounce – but in recent days has fallen back towards the lows, catching down to the straight bonds record low price.

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Culture

“Racial Bias Education Day” To Close Down Starbucks Nationwide

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Starbucks is going to the illogical extreme by taking an entire day to put their employees through what they call “Racial Bias Education Day”. Coming after a viral videos showed two men being arrested in a Starbucks in Philadelphia. Starbucks almost instantly gave into calls to do ‘something’ but will this really fix anything in a culture where ‘racism’ is more of a political talking point than an actual substantive conversation or debate.

CNBC Reports: Starbucks said Tuesday it will be closing all of its company-owned restaurants in the U.S. during the afternoon of May 29 to conduct a racial-bias education program.

“I’ve spent the last few days in Philadelphia with my leadership team listening to the community, learning what we did wrong and the steps we need to take to fix it,” Kevin Johnson, CEO of Starbucks, said in a statement Tuesday. “While this is not limited to Starbucks, we’re committed to being a part of the solution. Closing our stores for racial bias training is just one step in a journey that requires dedication from every level of our company and partnerships in our local communities.”

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