Before Donald Trump even took office, he was setting stock market records.British bank Barclays predicted the S&P 500 would lose 11 to 13 percent if Trump won the election, but would rise two to three percent if Hillary won. Citibank predicted a five percent drop-off under a Trump victory. J.P. Morgan predicted a three percent rise following a Hillary victory, compared to markets “falling further” if Trump won.
And they appeared to be right as futures began selling off election night when Hillary’s odds of victory came crashing down. When would they recover? Economics Nobel Laureate and New York Times columnist Paul Krugman observed that night “markets are plunging,” then wrote “If the question is when markets will recover, a first-pass answer is never.”They were all hilariously wrong. In just the first month following the election, of the 21 trading days since Trump’s victory, the Dow had reached all time closing highs 13 of these days! That was before he was even in office, mind you. Anyone who has checked their 401(k) balance since the election knows that things haven’t stopped since then. The S&P500 is up nearly 12% YTD in a market that’s been the most peaceful (i.e. least volatile) in history.
— Charlie Bilello (@charliebilello) July 14, 2017
And if this economist is correct, you ain’t seen nothing yet.
As the Gateway Pundit reported, Brian Wesbury joined Stuart Varney Friday morning on Varney and Co. to discuss the Trump economy. Wesbury argued that the stock market will see great gains in the next two years. He also noted that the only thing that could sideline these increases would be related to actions by the Fed:
Brian Wesbury: The number one cause of recessions in the Federal Reserve. When they raise rates too much, when they tighten monetary policy too much. Right now the fed has $2 trillion of excess reserves in the banking system and until they get them out they are not going to be running a tight monetary policy. Therefore I would say the odds of recession are extremely low.The only other item that Wesbury believes could stop the Trump economy are tax hikes which under President Trump are very unlikely.
If he’s correct, then a recent statement made by President Trump will only become even more accurate about the economy under his presidency. “Personally I’ve picked up nothing. That’s all right. Everyone else is getting very rich.”