It looks like the Trump effect is the economic jolt our economy needed to wake up from this long and disastrous slumber.
Many industry professionals predict that this pre-election upswing is just the beginning, and the pro-business, lower tax businessman-turned-president will see even more booming economic numbers, some of which are the highest we’ve seen in decades.
Great news for America!
The post-election advance in U.S. stocks fits into a pattern at the beginning of presidential cycles, and if history is any guide the rally greeting Donald Trump is only halfway done.
The S&P 500 Index has climbed about 3 percent since the Republican’s victory. The gain is in line with what Renaissance Macro Research LLC calls the “honeymoon period” for new parties, during which the market usually rises in the first few months following an election.
Equities tend to keep rising until after inauguration, producing a median S&P 500 increase that exceeded 5 percent from Election Day, according to the New York-based firm that studied market performance since 1952. Trump is scheduled to be sworn in Jan. 20.
“We’re talking about a handful of events that gives you a sense of the optimism that goes into the election promises,” said Jeff deGraaf, chairman and head technical analyst at Renaissance Macro. “The change, hope, or whatever the slogan may be, tends to sweep people off their feet before inauguration, and the reality seems to set in after.”