While there is much ado about the why and how, President Trump???s agenda will be the goose that lays the golden economic egg.
At the end of it all, the bullish case for stocks looks to be standing just fine, based on the assumption that the economy will hit its stride regardless of who is sitting in the White House. If tax reform, health care reform, trade reform, deregulation and infrastructure spending move from the whiteboard to a Congressional vote, economic growth seems assured.
Until then, I would argue we???re still moving down the road of populist change. It will matter little in the big picture how the political circus plays out in Washington, D.C., as to the inertia created when an economy the size of America???s gets up to cruising speed of growing gross domestic product (GDP) at 3.0% or higher.
This is not to take away from the mental jolt President Trump???s agenda has provided business and consumer confidence. Good ideas have a way of becoming grassroots movements that suddenly burst onto the national stage. That reality greatly explains why a guy as divisive as Donald Trump won election on Nov. 8 and now is the sitting president.
The notion of lower taxes, less government intrusion, pro-business initiatives and big-time public works spending targeting job creation has lifted economic sentiment readings to historic highs. While the messenger is mired in a world of political ???deep kimchi,??? the message is resoundingly popular with the business community and half of the voting population. Take the U.S. economy at a glance for a minute:
The United States is the world???s largest national economy in nominal terms, representing 22% of nominal global GDP and 17% of gross world product (GWP). The U.S. GDP was estimated at $18.56 trillion in 2016, with the U.S. dollar considered the world???s foremost reserve currency. Its seven largest trading partners are Canada, China, Mexico, Japan, Germany, South Korea and the United Kingdom. Americans have the highest average household and employee income among the Organisation for Economic Co-operation and Development (OECD) nations. American essentially has held this ranking since the 1890s. The United States also is the second-largest manufacturer and third-largest producer of oil and natural gas, as well as home to 128 of the world???s 500 largest companies.