Questions on Trump, the future of America, and its effects on the Financial Markets have been floating through mainstream media over the past couple of days. Even before the election was decided, flashing on the screen pointed to the major drop in the futures and the impending doom a Trump presidency might cause. Oddly enough, those drops only lasted for the night and the first few days of trading in the market seemed, well, average.
The Stock Market can be broken down into two personalities: The predictable and logical side and the volatile and emotional side. Both play their part in the ups and downs but both consider opposite factor in those decisions. While one side plays on the numbers, the other watches the news and responds accordingly.
So when an unpredictable surge by our new president-elect happened, Market futures jumped into action. With a Trump victory came a deluge of questions. What would happen to companies that moved jobs out of the US? How about the companies focusing on cleaner energy (especially considering global warming was invented by the Chinese)? Unpredictability causes turmoil, which in turn, incited panic.
On a more technical side: what’s going to happen to jobs and taxes? Could trickle-down economics possibly work this time? We aren’t so sure. Cutting taxes will improve spending and more jobs could mean higher spending, but a tax cut will most likely increase national debt and put a greater space in income discrepancy. But what effect will all of this actually have on a business’s bottom line? We place our bets that the economy will continue to grow and innovation will continue at a constant pace, but it’s the law maker’s jobs to make all that possible and we aren’t sure what a Trump white house can push through. All the question marks will be decided in time and the market, as it always does, will adjust accordingly.
Should we worry? Historically, no. The Dow hit an all-time high in trading on Friday and social media posts have quelled back to normalcy, but only time will tell if our new “Trumped Up” economy will live up to the folklore that its so far received.
In times like this it’s important to remember who truly has power in the country. Even more so than the President, Congress, and Senate, it’s the business owners, entrepreneurs, and innovators who are the backbone to every economic move we encounter. George Bush had nothing to do with the iPhone just like Theodore Roosevelt had nothing to do with the Ford Model T. It’s not always politics that push the country forward but Americans, and for that reason, our economy seems as strong as ever – no matter who might be sitting in the White House.
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