The Washington Post became the first major liberal newspaper to admit the stock market’s rapid rise — culminating in a record close above 22,000 yesterday — actually may be related to the election of Donald Trump as president.
The markets’ most recent run-up does indeed have something to do with Trump’s win in November, several analysts said. Back then, some on Wall Street cheered the ascent of a businessman into the White House and his promises to cut taxes, invest in infrastructure and increase military spending. The Dow turned sharply up right after the election and has risen 23 percent since then.
Some companies had more to gain from Trump’s pronouncements than others and saw their stocks jump, an effect Wall Street brokers call the “Trump Trade.”
Boeing, which generates much of its profits from its Defense, Space and Security division, has seen its shares soar more than 70 percent since Trump’s election. It has accounted for 45 percent of the Dow’s rise this year, far more than any of the other 29 companies in the index.
In an effort to downplay the rise, most major media outlets have switched to using the date of the inauguration as a starting point, instead of election day, to make the increase appear to be average rather than exceptional.
The 23 percent rise is far better than the similar period under George W. Bush (-3.7) and Barack Obama (+17.7) when they were elected for the first time.
The media knows presidents aren’t solely responsible for the rise and fall of the stock market, but their policies can affect the market’s mood. And the mood since the election has been positive.
After years of boasting about gains under Obama, the liberal media is now discounting the stock market’s records under Trump, proving just how hypocritical it can be.
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