Under President Donald Trump, the stock market has risen at more than double the average rate of past U.S. presidents, with the S&P increasing more than 50% during his first three years in office.
Just this year, the index gained 28%. In contrast, the average rate of return for year three, while higher than the other years of a president’s first term, is just 12.8%. Trump’s second year saw a loss of 6.2% overall, but it was more than buoyed by a year one gain of 19%.
Stocks are currently in record territory despite a trade war with China and slowing economic growth around the world. U.S. unemployment remains so low that there are millions more jobs available than people looking for work.
In addition, job growth is occurring faster than it has since 1890, and the Fed has cut interest rates three times. Wages are rising, and the real income of the average family is estimated to have increased between $4,000 and $6,000 for 2019.
Stocks are predicted to increase for 2020, with the average gain in the fourth year of a first presidential term being nearly 6%.
Read the full story here.