Following the 2016 US Presidential election, Americans are feeling extremely optimistic about the economy.
Months before Barack Obama became the next President of the United States in 2008, consumer confidence was at an all time low. America was in the middle of a housing crisis and facing a major economic recession. A NYC based research group, The Conference Board, found that by October 2008 the Consumer Confidence Index dropped to 38, the lowest numbers since the index was first created.
Now, researchers found that people are overwhelming positive about the future of the economy.
According to a Surveys of Consumers, chief economist Richard Curtin explained that following Donald Trump’s election, Americans are experiencing the highest levels of consumer sentiment in 12 years.
Basically, many Americans believe that having Donald Trump in office would help strengthen the economy. In fact, positive outlook for the new president is twice as high as the prior peak, which occurred when Ronald Reagan took office.
The positive outlook on 2017’s economy has many Americans believing that next year will bring in new jobs. Curtin explains, “Consumers anticipated that a stronger economy would create more jobs, although expected wage gains were quite meager.”
Ultimately, Curtin argues that the survey illustrates a picture of Americans excited about the expected policy changes created by Donald Trump. This in turn, could lead to a jump start in the economy even before Trump’s policies are ever enacted.
Stock Markets After 2016 Election
Stocks seemed to follow America’s economic optimism. Dow Industrials had their best week since 2011, climbing up 5.4% for the week. In fact, since the November election the Dow has gone up more than 14%.
But, the biggest sector affected by Trump’s Presidential election seems to be the financial sector. Financial stocks have also gained in value since Donald Trump became the next President of the United States. Both, Goldman Sachs and JPMorgan have increased by 14% and 11%, respectively since November. Analysts argue that Trump’s presidential policies would lead to fewer banking regulations.