Posted on 01/04/2018 4:26:41 PM PST by DoughtyOne
Most folks here support President Trump and what he is trying to do for the nation, what impact he is having on the nation.
We hear good news, and we instinctively know it's good news. At the same time I think we fail to focus on the magnitude of change at times.
This is one of those times. This good news cannot be overlooked. Lets look at some numbers. They are very impressive.
The Dow Jones Industrial Average (DJIA) closed above 25,000 points today, at 25,075.13. LINK It's a first. In the 120 years of the DJIA, this is the highest close yet.
Yes, that sounds pretty good, but do YOU KNOW how good it is?
Obama was able to say that too a number of times, "best in 116-118 years", but he never presided over anything like this, in a calm market, just based on his policies and no calamity involved.
The morning of Monday, November 7th, 2016, the DJIA stood at 17,888.28. LINK Again, fourteen months later it has closed at 25,075.13. LINK Did you know that is a 40.176% increase? That's (25,075.13 - 17,888.28) divided by 17,888.28.
The mere idea that Trump would become our next president caused the market to explode the day before the 2016 General Election. On November the 7th, 2016, the DJIA climbed 371.32 points. LINK
Now some will say that it wasn't because of Trump, because overnight trading after Trump had won, showd a massive loss. But by the end of the business day on the 9th, the market had significantly recovered. It was merely jitters. On November the 10th, the market set a new record.
From November the 10th, until the end of the year, the DJIA went on to set a new record 17 times. LINK In the ten months prior to November of 2016, Obama's market had set just 8 new records, for an increase of 3.4%. LINK In the period after the election, the market rose 10%, in the ball park of 3 times in one fifth the time. LINK
In 2017 the DJIA had 70 more record breaking closes, and then we had the record close today. This new record today is the 89th since the General Election on November 8th, 2016. LINK
Think about it this way.
Since November the 7th, 2016, the DJIA has accumulated an additional approximate $7 trillion dollars of value. I say this because I read and posted an article on the forum about ten days ago, that heralded a $6.6 trillion dollar increase in market value at that time. This is a guesstimate based on that and increased market value since that time. If you look around, you can find several places that talk of $5 to $5.5 trillion additinal value in the market about sex weeks ago. Amazing...
Since November the 7th, 2016, the DJIA has increased a full 40% of the total value of the 120 years of this market. That's 80% of 50% of the total accumulated value over the 120 years the market has existed, and it was added in just 14 months. (sourced above)
The icing on the cake is that it didn't take place after a catastrophe, although some of us did see Obama's administraton as one. No this was not coming off a depressions, a great recession, monetery crisis, or in response to anything other than a new president who was seen as a person who would rule in ways favorble to business, the economy, and the general public, something the last person never exhibited in his eight years in office.
Yes, just the thought of MAGA drove this. And today the nation is 40% greater than it was, with regard to the DJIA.
Thank you Mr. President.
More good reading, and a source for some of what I mentioned here: LINK
GDP during the Obama “recovery” averaged 2%. Half of the average recovery, 1/4 the Reagan recovery. We are not seeing a bubble now, we are seeing a return to “average”, which will be followed by “better than average”. Thanks to increased GDP and the Tax Bill bringing $ trillions of “repatriated” money we will see our first Trump surplus. In a year long term interest rates could be 1 percent higher. This could depress the market value of outstanding 30 US Treasuries dramatically, allowing us to retire some at a deep discount. If this happens even a little bit...Katie bar the door. Dow 40,000.
What happens when markets get oversold? Investors buy up shares in those companies soon afterward. While I can't point to a thing that Obama did to help, the markets did stabilize in the year following his inauguration. This led to a normalization of the markets, and it resulted in big gains in 2009. If you stayed invested, you likely made the majority of your losses back, and then some.
That one year contributed greatly to "stock market gains under Obama," and skewed his overall numbers. If you look at late 2013 through Election Day 2016, the markets were generally flat. Liberals either aren't aware of this (highly likely), or simply choose to cherry-pick. Regardless, we likely would've maintained that stagnation under a Hillary Presidency, though her favorite sectors might've benefited from favoritism in policies.
I'm to the point in my 401(k) where a good day can shoot my balance up thousands at a time, and I'm starting to shift my allocation to a slightly more conservative mix. Definitely enjoying this winning!
Thanks Lou L.
In preparation for this post, I did look at the history of the market back through 2012. I also looked at certain points in time like early 2009, 09/11/2001, and other periods too.
Your comments are dead on target about Obama’s early years and the movement of the market. Your reasons stated were right on target too.
Without looking for exact figures, my recollection is that the 2015 and 2016 prior to the election probably saw a 1.5-2.0% change during the period up or down. It was a lackluster time period. The early 2016 gains before the election were 3.4%, but I believe 2015 was a down year by roughly the same numbers, perhaps a little less.
At any rate, it wasn’t a time to gloat about, if you were Obama, in relationship to Trump’s market.
I agree with your take on things, and I am glad you are fairing well at this time. Great news.
All the best...
bkmk
On Friday the DJIA went up over 220 more points.
The market is now 41.4% higher than it was the morning of 11/07/2016.
The ETF "MAGA" doing quite well...also KOL (coal)
Good to know.
“:^)
Thank you, and I’m sorry to hear about your computer.
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