However, even by this measure, Just like the Dow, the Fed lowering interest rates and flooding the economy with cash has led to higher valuation levels while company profits were stagnant last year. And, as Americans prepare to go to the polls again, how credible is Trump’s claim that, if re-elected on 3 November, he would “again build the greatest economy in history”? … The decline is at least partially due to the trade wars impacting global growth and the U.S. economy experiencing slower growth last year. Over the next three and a half years it shot up by 55 per cent. The U.S. Bureau of Economic Analysis released its first estimate for 2019’s fourth quarter GDP growth and for the full year. GDP growth hasn’t reached Trump’s 3% or higher goal. You can also choose to be emailed when someone replies to your comment. These were going to be very hard to achieve under the best of circumstances, but with the Wuhan coronavirus there are already rumblings that these won’t be met. The existing Open Comments threads will continue to exist for those who do not subscribe to Independent Premium. The outlook for a slower economy caused the Fed to lower interest rates and increase its balance sheet, which led to the stock market’s rallying in 2019 even when corporate profits were essentially flat. If, and more likely when, there is another recession the deficit could easily top $2 trillion. Please be respectful when making a comment and adhere to our Community Guidelines. “It’s time to start thinking big once again,” he said in a speech to the New York Economic Club in September 2016. During his campaign, Trump promised to repeal and replace Obamacare. The US President made some audacious promises when he was elected. I provide independent research of technology companies and was previously one of two analysts that determined the technology holdings for Atlantic Trust (Invesco's high. "Wealthy people did well, but non-wealthy people did the best. Does it measure up to the President’s high claims? The gains are largely driven for the same reasons as the Dow, but one interesting aspect is that the $1 trillion market cap companies (Apple, Microsoft, Amazon, and Alphabet/Google) have had an outsized influence on the index. However, many analysts think the decision of the US central bank to effectively promise unlimited money printing to support the economy at the nadir of the slump in March has as much to do with the stunning recovery of share prices as optimism about Trump’s economic management. Independent Premium Comments can be posted by members of our membership scheme, Independent Premium. On median household incomes, the picture from the US census bureau did show a strong 10 per cent real-terms increase between 2016 and 2019. Trump and Obama (and their admirers) are slugging it out, both claiming that it is their policies that have led to the ongoing economic expansion, steady job growth and higher stock prices. Please continue to respect all commenters and create constructive debates. Trump didn’t do himself any favors with the trade wars he started and even the signing of the Phase One trade agreement with China looks like an overpromise and under-deliver deal given the goals that were agreed to. Will Highly Overvalued Tesla Stock See A Correction After S&P Inclusion? Prior to becoming an equity analyst, I spent 16 years at IBM in a variety of sales and manufacturing positions. Trump Did Nothing to Help the Economic Boom (Bloomberg Opinion) -- The public gives President Donald Trump very low marks for his handling of the coronavirus pandemic and race relations. It’s worth noting that Trump threatened to call off negotiations with Congress on 7 October over extending the assistance to households not because he saw them as insufficiently generous but because he said the Congress Democrats’ proposals would help “cities and states” that tend to vote Democrat. 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