Take a look at the stock market’s performance over the past year, and it’s not hard to see when Donald Trump won the 2016 presidential election.
The market has been on a tear since his victory — with the market closing at record highs nearly every single day until mid-December. Despite all the gloom and doom from media pundits — and even a number of financial experts — those putting their money where their mouths are seem to think that America’s economic future will be brighter because of Trump.
Trump’s election sparked the biggest one-month S&P 500 rally in 93 years of existence. The Dow Jones Index (pictured above) has slightly outperformed the S&P since Trump’s victory. Despite the chaos from liberal agitators following Trump’s election, if the market is any measure, we’ve had one of the most stable transitions of power in history.
As CNBC reported:By one measure — the stock market’s — the Trump transition has few equals in terms of stability. Using the Dow Jones industrial average as a guide, the market has only once gone up more in aggregate in the period between the election and inauguration. Over the same period, the Dow has never in history veered less on any given trading day from its close the day before.
The index rose a total of 7.62 percent in this most recent postelection period, and never fell more than 1.2 percent from its closing high the day before, according to Bespoke Investment Group. Those numbers are nearly unprecedented going back to 1896 and the election of William McKinley. The only larger gain came under Herbert Hoover from 1920-21 of 21.85 percent. The least the market fell from its highs, aside from the Trump move, was 2.7 percent for Bill Clinton in 1992-93 and 2.9 percent for Dwight Eisenhower.
Not bad. Let’s just hope that the market truly is a leading indicator of what’s to come.
[Note: This post was written by Matt Palumbo. Follow him on Twitter @MattPalumbo12]