A historical Presidential election took place less than six months ago, with drastic changes already taking place inside the walls of the White House. Since the election, the financial markets have been experiencing some changes, reaching new records and continuing to make a positive impact.
The eyes of the entire world are on newly-elected president Donald Trump, as well as on the changes that will happen during his time in office. Part of those changes concerns the financial markets.
One of the largest platforms President Trump spoke to was regaining control of the domestic markets and anti-globalization. One of the first powerful choices he made was halting the move of Carrier, an HVAC company, to Mexico by keeping the company’s plant in Indiana afloat. According to Investment News, since the announcement of Trump’s support of Carrier jobs remaining in the U.S., other large domestic companies, such as Amazon and Toyota, announced their intent to continue providing locally based jobs. Since his successful campaign and victory, others seeking leadership roles in their countries have adopted similar platforms to run upon.
The aggressive approach in everything the president seeks to accomplish could strongly benefit the economy in the coming years. A prime example is the ability the president will have in overhauling corporate tax. By lowering taxes and making them more appealing to American-based companies, international trade rates are likely to take a blow. The financial markets in the U.S. will continue benefiting if such trends continue in the direction they have taken since the election results were announced.
Many financial advisors have begun to shift their industry’s focus as the markets continue to change. Due to the President’s anti-globalization mindframe, advisors are suggesting that investors shift their concentration towards U.S. companies who aren’t dependent on international trade. Having pulled out of the Trans-Pacific Partnership days after his inauguration, there are likely future days of limited international trade for major corporations ahead.
Within the first few weeks of the new administration, the Dow Jones hit 20,000 for the first time in its history of existence. Though previously name-calling the stock market, the President joyfully celebrated the monumental achievement, sharing the honor he felt in being a part of this historical event. The overall market has risen 10 percent since the November results, and many experts equate that to the President’s pro-business philosophy.
Throughout the controversial election process, the economy became a hot topic of debate in many situations. With the 45th President’s view on keeping jobs in the U.S. with limited importations, the economy is bound to continue on the upward spiral it has been seeing since last year. As no concrete plans from the White House have been put into action regarding the economy, investors must wait patiently for details to fall into place before predicting realistic outcomes.