Market performances of the Trump era
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Love him, hate him, or frankly don’t give a damn, the four-year tenure of the 45th President of the United States of America Donald John Trump was inarguably good for investors and speculators in the stock market.
I submit that over this period, Trump’s America First agenda was largely responsible for the country’s outsized stock market gains.
We compare the US market indices with other major world bourses below. Index values and percentage gains from Trump’s election day until his defeat for a second term are presented in the table below.
In my opinion, this is a legitimate way to analyze the numbers because stock market indices are forward-looking measures. US equities immediately began their bull market run on the day after Trump’s election on November 8, 2016 and despite a couple of major corrections, continued thru his recent defeat on November 3, 2020.
Only the London Stock Exchange (FTSE Index) outperformed the four major US markets. The next best was Japan’s NIKKEI average, which matched our worst-performing index, the small cap Russell 2000:
If you prefer to look at the metrics a bit differently, send a request to the above email address and we will supply numbers from the day of Trump’s inauguration on January 20, 2017 until he left office on January 20, 2021. The boisterous markets have accelerated over the past 11 weeks. In my opinion, this can be mostly attributed to anticipated economic stimulus of our foundering economy by a new governing regime with a drastically different political agenda.
Happy, sad, or indifferent to the American election results; bullish, bearish, or middling regarding America’s economic situation; positive, negative, or neutral with respect to our treasured American way of life, I opine that we must conclude:
The past four years have produced remarkable returns indeed for the pocketbooks of average American investors and stock market speculators alike.
Q.E.D. Ciao for now