Seymour Zises, President and co-founder of Family Management, writes bi-monthly opinions on issues and observations of relevance to clients and investors.
The U.S. stock market zigged up and zagged down only to turn upward in this next to last day of May. Currently the S&P is plus 1.4% for 2018 (as of May 30, 2018). The earnings numbers of U.S. companies have generally risen – without the tax cut up approximately 14% and with it close to 25%.
When goods cross borders, troops stay home – or so it has been said. Are trade agreements totally fair and enforced? Will they ever be? Like it or not, we live in a GLOBAL economy. All politics may be local, but trade is not.
Call it what you want, but the equity market is on a roll. As the tax bill became law and companies began to announce bonuses, the spirit of American business seems to have been buoyed by the current administration. With 12 months behind us, who would have thought that the Dow Jones Average would be up over 29% since Mr. Trump’s election.
Mr. Trump has been Commander-In-Chief for one year, and oh what a year it has been. In our world, the financial one, the U.S. stock markets have surged to all-time highs.
As the summer receded, we saw many surprises indeed. The U.S. stock market surged, despite the despair brewing from the aftermath of the hurricanes, and more quietly, from job loss and income inequality, which has taken center stage in America.