One of my small stock portfolios just took a big jump.
Perhaps the most contentious aspect of Trump’s economic policy was his approach to trade, particularly with China. The imposition of tariffs led to increased costs for businesses reliant on global supply chains and created uncertainty in the markets.
However, many investors saw these moves as part of a broader strategy to level the playing field for American businesses.
Add it all up, and this mix of lower taxes, lower regulatory burden, and America-first dynamics were a boon for corporate profits, which drive stocks. The market roared higher during Trump’s 1st term. Even when the pandemic hit, Trump’s combination of aggressive stimulus along with the Fed’s extraordinary actions resulted in a rapid recovery.