The left would have it believed the recent White House shake-up that left National Security Adviser Michael Flynn in resignation mode only underscores the inability of President Donald Trump to govern – a message that, if true, ought to leave Wall Street investors shaking in their shoes.
But, in fact, it’s the opposite.
“After all the Michael Flynn scandals and overturned executive orders and middle-of-the-night disruptive tweets, Wall Street believes one thing above all — that the Trump administration will survive and the U.S. economy will thrive,” CNBC wrote.
It’s a positive for the besieged White House that’s going to be difficult for Democrats to overcome. Democrats have long positioned themselves as the party of the little people, and Trump, as a wealthy elitist who cares only for Big Business. But it’s hard to piggyback political opposition to the president using numbers that show growth for the business world as a whole – growth which then trickles into the economy by way of more jobs, lower prices and better entrepreneurial opportunities for all.
Nasdaq’s composite index set a record-high close for seven days in a row, the longest streak the nation’s seen since 1999. Meanwhile, the S&P 500, the Nasdaq and the Dow Jones industrial average all hit at record levels during closings for five days running – again, another streak, this one not seen in 25 years.
Stocks, meanwhile, are experiencing the second-longest bull market in history. The first? That was between the years of 1987 and 2000.
And according to financial experts, a large part of the stock and market positives are attributable to one factor: Trump’s pro-business message.
“This indeed is the Teflon market,” said David Rosenberg, a senior economist at Gluskin Sheff, during a market report earlier this week. “Even investors who were screaming to sell the market if Trump got elected just ahead of last November’s vote have become some of the most vocal cheerleaders.”
Trump recognized the favorable markets in characteristic Twitter fashion.
“Stock market hits new high with longest winning streak in decades,” he wrote. “Great level of confidence and optimism – even before tax plan rollout!”
Trump, in recent remarks, made clear his tax plan is heavy on the simplification process – something, he quipped, wouldn’t go over so well with the likes of tax preparers H&R Block.
“We’re going to simplify very greatly the tax code,” he said, during a meeting this week at the White House with retail CEOs. “It’s too complicated. H&R Block probably won’t be too happy. That’s one business that might not be happy with what we’re doing. Other than H&R Block, I think people are going to love it.”
Trump also said the details of his tax reform package are forthcoming.
“We’re doing a massive tax plan,” he said, during this same meeting, CNN Money reported. “It’s going really well.”
In the meantime, market confidence continues to surge.
Wednesday’s retail sales beat expectations, Business Insider reported. And money from investors continues to bolster the equities market, CNBC said.
“There’s a lot of noise coming out of Washington [about politics],” said Paul Zemsky, the chief investment officer at Voya Investment Management, in CNBC. “But investors are a little bit numb to the tweets and static coming out of Washington and are focusing on the real economic numbers, which are probably more accurate than all of the noise and all of the partisan positioning.”