Those seeking unemployment benefits are down. The stock market has been flirting with an unprecedented 25,000 point milestone. Industry is expanding. All since President Trump took office.
So is it cause and effect from his policies?
Probably in large part. But that’s both good and bad.
ZeroHedge reported the booming economy has triggered a $2 trillion increase in the value of America’s homes, meaning homeowners are that much wealthier at least on paper.
But it also leaves newcomers to the market struggling to find rental housing that is affordable.
The report said the value of homes in the U.S. surged 6.5 percent in 2017, making the total value some $31.8 trillion.
That’s, the report said, 1.5 times the Gross Domestic Product.
The LA metro area? Worth $2.7 trillion alone, more than the United Kingdom’s GDP.
The report said in New York city metro, the value is $2.6 trillion, “more than the French economy” or what it would cost to purchase nearly 8,500 Boeing 787-10 Dreamliners.
It’s just one of the indicators.
“That’s not a big deal in the grand scheme of things. It’s just one measure, after all, and the differences aren’t huge,” Investors commented. “Except it adds to a pile of ‘unexpectedly’ good economic reports that have been coming out these days.”
Other factors are increasing payrolls, higher consumer confidence, labor costs lower, higher retail sales, in a trend the report said “started almost as soon as President Trump took office.”
“Normally, it takes months for a new administration’s economic policies to take effect. But there was a sharp surge in business and consumer optimism, and the stock market has been on an upward trajectory, since the day Trump got elected. The IBD/TIPP Economic Optimism Index has been in positive territory for 15 months straight. What’s more, Trump was able to take immediate executive action on regulations, which sent a signal to businesses, markets and consumers alike.”
Projections of growth of 2 percent or thereabouts have turned into reports at 3.1 percent.
While the stock market on Friday turned in a lackluster day, it was only 200 points away from the 25,000-point milestone, a mark all but out of sight during the former administration.
Reported Fox, “The Dow and the S&P 500 are on track to finish higher for the ninth-straight month. It’s the longest winning streak for the Dow in almost 60 years, and the S&P in more than 34 years.”
Reuters also reported its gauge of factory activity in the Upper Midwest reached the strongest level in over three years in December, “led by much stronger readings on new orders and production.
“Marquette University and the Institute for Supply Management-Milwaukee said their seasonally adjusted index on manufacturing in the Milwaukee region rose to 65.57 this month from 59.62 in November. The December figure was the highest since November 2014 when it was 68.9,” the report said. “A reading above 50 indicates regional factory activity is expanding. “