The stock market hit yet another milestone yesterday, with the Dow Jones Industrial Average reaching 22,000 points for the first time in history. After passing 22,000, the market sustained those gains for the rest of the trading session.
The 131-year-old stock index received a 50-point boost from Apple, whose shares saw a 6 percent rise following an earnings report.
As the Dow approached that historic figure, President Donald Trump tweeted out “Stock Market could hit all-time high (again) 22,000 today. Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!”
Stock Market could hit all-time high (again) 22,000 today. Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!
— Donald J. Trump (@realDonaldTrump) August 1, 2017
In passing 22,000, the Dow is up over 20 percent since election day.
Among the causes, according to the financial paper Barron’s, are as follows:
- Strong economic fundamentals: Low unemployment, slow but steady GDP growth, and other economic indicators point to a still improving economic climate, encouraging optimism which leads to more investment and spending.
- Low interest rates: The Federal Reserve has increased interest rates three times since December, another reason to be optimistic about the economy. Nevertheless, rates are still near historical lows, meaning that investors looking to earn a reasonable return have few options besides the stock market, driving share prices higher.
- Strong corporate earnings: Companies have been earning higher profits and expect to earn more in the future as the economy improves and business and consumer spending increase.
- Weakening dollar: Many of the Dow’s components have large international operations. The U.S. dollar has fallen 10% since the start of the year relative to other currencies, meaning that foreign profits are worth more in dollars and making U.S.-produced goods cheaper and more competitive abroad.
Whatever the reason, it’s clear the Trump economy is booming. Leftists economists who predicted a recession due to Trump’s election have egg on their face. I sure wouldn’t want them handling my money!
I say we shoot for 30,000 next!
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