WASHINGTON – Market analysts said President Donald Trump deserves credit for the largest stock market surge experienced under any recent Republican president 50 days into office.
“The market is definitely responding positively to the policies that Trump is promoting. He is pro-business, which helps create jobs as well as stimulates growth and the market is reflecting that,” said Deacon Hayes, who is a financial and business consultant as well as the founder of Well Kept Wallet LLC.
Since Trump took office Jan. 20, the Dow Jones Industrial Average has increased 5.43 percent and the S&P 500 index has jumped 4.459 percent. The NASAQ Composite Index has increased 12.7 percent since the days leading up to the presidential election.
Deacon said that the Trump administration’s economic proposals likely bode well for long-term growth but that the market could experience periodic declines.
“It is hard to say how long this rally will last. There are many issues that could potentially have a negative impact on the rally [i.e.] repealing Obamacare, the increase in student loan debt, etc. I think in the long term we will see movement in the right direction, however, there will likely be dips along the way.”
Sylvia Maxfield, who is a dean and professor at the Providence College School of Business in Rhode Island, said that Trump deserves credit for the recent stock market rally but that the good times may not last.
“There is euphoria about infrastructure spending and much more pro-business policy environment,” Maxfield said.
“This will wear off as the reality of Washington politics sets in… I think we will see some leveling off by the third quarter of this year,” she added.
Bob Johnson, who is president and CEO of the American College of Financial Services in Bryn Mawr, Pa., said Trump is partially responsible for the recent stock market surge.
“Trump should receive some of the credit for the improving economy, but certainly is not responsible for the entirety of the positive news,” Johnson said.
“The president of the United States receives too much credit for a booming economy and too much blame for a stagnant or deteriorating one,” he added.
Johnson said he is uncertain as to the prospects for long-term market growth.
“I have no idea how long the market rally will last. I do believe that as interest rates rise, returns to stocks will fall. Now, that doesn’t mean stocks will lose value, simply that stocks tend to thrive in an environment of falling interest rates and face headwinds when rates rise,” he explained.
The DJIA closed today at 20,837.37 which is a 0.21 percent decrease from when it opened.
This article was republished with permission from Talk Media News
Bryan is a freelance political journalist who has extensive experience covering Congress and Maryland state government.
His work includes coverage of the election of Donald Trump, the confirmation hearings of Supreme Court Justice Brett Kavanaugh and attorneys general William Barr and Jeff Sessions-as well as that of the Maryland General Assembly, Gov. Larry Hogan, and the COVID-19 pandemic.
Bryan has broken stories involving athletic and sexual assault scandals with the Baltimore Post-Examiner.
His original UMBC investigation gained international attention, was featured in People Magazine and he was interviewed by ABC’s “Good Morning America” and local radio stations. Bryan broke subsequent stories documenting UMBC’s omission of a sexual assault on their daily crime log and a federal investigation related to the university’s handling of an alleged sexual assault.