- Americans who own stocks are much more likely to have a favourable view on what President Donald Trump has done to the economy, according to a Public Policy Polling survey.
- The S&P 500 is up 25% since Trump’s election victory last November.
That’s according to a survey conducted by the left-leaning Public Policy Polling, which recently collected the opinions of 862 registered voters. The survey found that 41% of participants who owned stocks thought their personal economic situation had improved this year, while only 15% said it had gotten worse.
That’s a far more optimistic reading than the one put forth from respondents who don’t own stocks. Just 24% of those in the group said their economic situation had improved, according to PPP. Twenty-nine per cent said their personal circumstances had worsened.
The disparity in the survey results shows just how big of an impact the stock market’s torrid postelection rally has had on the psyche of Americans fortunate enough to ride the wave. The S&P 500 has surged 25% since Trump’s victory in November 2016, creating $US5.6 trillion in corporate market cap – blockbuster numbers by any measure.
And while the biggest direct impact of Trump’s proposed policies on individuals will come under the new tax plan, people with a stake in the market have been able to enjoy a lucrative ride to record highs in the meantime. At the same time, those without positions have waited patiently for tax reform that may or may not improve their economic situation.
It’s important to note that despite Trump’s attempts to take credit, the stock market hasn’t necessarily risen to new highs because of anything specific he’s done. US corporations are enjoying a prolonged stretch of impressive earnings growth, which has historically been the biggest driver of stock gains. The Federal Reserve‘s continued monetary accommodation has also emboldened companies and investors alike.
But regardless of why equities are so strong, there’s no denying that strong stock gains are enough to assuage the economic concerns of those invested in the market. And it may not be too late to put some skin in the game.
The majority of equity strategists across Wall Street are calling for the S&P 500 to continue rising through the end of 2018. So even though stocks look expensive, they could still be a good investment. And who knows; maybe it will even improve your perspective on Trump’s economy.