January 26, 2017

Some are calling this the 'Trump Effect'

Rebel Staff

The so-called Trump Effect has been utilized by some in the media to describe the implied ‘rise of intolerance’ — the alleged growth of ‘racist’, ‘misogynistic’, ‘fascist’ tendencies reportedly now espoused by millions of ‘deplorable’ Americans.

But it’s not the content of the Huffington Post’s editorial pages — the left-of-centre anti-Trump rhetoric of the Left, and Right, for that matter — that, repurposed, reflects the real-world impact that a change of administration can have — it’s the markets, the state of the financial world, amongst other things.

And guess what: records are being broken.

The Dow Jones Industrial Average, on Wednesday, ended trading above 20,000 points for the first time, rising 0.8% to just over 20,068.

The Standard & Poor 500 and tech-heavy Nasdaq also rose to new heights, with the former advancing 0.8 percent to an all-time high of 2,298, and the latter growing 1% to 5,656.

Even Germany’s DAX stormed to its highest level since May 2015.

But what is propelling this growth, this potentially-rosy financial future?

Well, numerous analysts are indeed pointing to the ‘Trump Effect’.

Jasper Lawler, senior market analyst at London Capital Group, spoke of the series of executive orders announced by the Trump administration since January 20 as the firing pistol for the rally.

Lawler told the Guardian:

“Dow20K came on the same day President Trump was preparing to sign an executive order to build a wall on the US-Mexican border. The big industrial giants including Caterpillar and General Electric led the gains on the expectation of an increase in infrastructure spending under Trump. A lot of diggers will be needed to build the wall!”

Indeed, if Donald Trump will build a wall — something Lawler calls the president’s “most famous and probably most controversial campaign promise” — “there’s every reason”, he says, “to believe he will cut taxes, increase spending and cut regulation — all good things for U.S. companies.”

Tim Ghriskey, chief investment officer of financial management firm Solaris Group in New York, told the BBC:

"There is a real belief that [Mr] Trump is real, he has been extremely active these first couple of days of the presidency and a change may happen faster than people had thought."

Conor Campbell, financial analyst at Spreadex — whilst referring to Trump as “thin-skinned” — maintained this narrative, speaking of the ‘excitement’ investors are feeling with regards to the new president.

Now, all of this may simply amount to a massive bubble, skeptics have argued, with former U.S. Labour Secretary Robert Reich projecting that the rally won’t last — however, as Neil Wilson of London group Capital, told the BBC:

“[…] There is still a huge amount of cash piled up that could yet pour into equities and power further gains through 2017. It might not be long before 21,000 is in sight.”

And that can only be a good thing.

Follow Alex on Twitter at @RealAlexanderJ

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commented 2017-01-29 22:00:46 -0500
Edward. Yes, that is definitely a hallmark of the Left. For the last 40yrs they keep trotting out stuff like their shared jobs plan or talking about shorter work weeks. When the microwave first came out, they thought it would give them hours of leisure. They did the same thing for the smart phone. It’s why they’re pushing for the Income Supplement. It’s why they push for wealth distribution. They’re jealous of the money but don’t want to work for it. So they whine! It’s why the teachers don’t want to mark students, and why everyone is to get a ribbon. They want to win without the work. The list goes on . . . .
commented 2017-01-27 16:08:16 -0500
The market puppeteers found a reason to rally the market. If Trump is able to get in his reforms yes, it will be good for corporate America, but today we saw reality. GDP growth is at European levels of 1.9%. While adjusted for inflation it is NOT adjusted for population growth. The US grows at least by 2% so essentially we have no growth – not per capita.
commented 2017-01-27 15:58:25 -0500
Sorry Keith. noted
commented 2017-01-27 13:45:47 -0500
Alex Jones—-Impressed with your reporting; you are not PC.
As someone below asked; what is the truth about Islam taking over the UK ?

commented 2017-01-27 11:15:46 -0500
Campbell let me inform you trump is not thin skinned , he just stands up for himself like a man and refuses to let the msm and turdo’s cbc tell lies about him and twist his facts which they do about trump on a daily basis , trump defends himself and refuses political correctness , something most politicians will not do especially the gutless pansies we have in Canada including the conservatives who are so afraid of offending some wacko group like those nut bar women’s group committing terrorists acts and assaults all paid for by george soros , they will not come out and stick up for what Canadian values and culture used to be just so they hope to get the vote from these lefty nut bars while kicking the real conservative canadians to the curb .
commented 2017-01-27 10:58:01 -0500
I wonder why the Left hates success so much. Oh yes…..because it is the result of hard work.
commented 2017-01-27 01:08:15 -0500
Funny , the only fascism and intolerance i see is coming from the anti Trump people, so in a way they are correct, just not about who is doing the offending.
commented 2017-01-27 01:06:49 -0500
Ahh the good old race card, the lefts pathetic attempt to deflect and deny. And as usual the left gets to decide that everything they do not approve of is racist. Black people will do better under Trump and the left will say they are being used in some way. Meanwhile the left has used and abused minorities in the most sickening ways.
commented 2017-01-26 20:46:48 -0500
I can’t believe market analysts are so ignorant or biased or both – the so-called “Trump effect” is nothing more complicated than optimistic market response to the return of the American petro dollar – after 8 years in energy poverty Trump is turning on the taps again and cutting the agenda 21 shackles from energy producers, energy will now be abundant and cheap giving Rebuilding US industry a massive advantage.

I see the globalism mind melt finds it hard for lefty economists to wrap their head around the indisputable fact that modern economy runs on cheap energy, while inefficient, limited green energy is a distinct disadvantage to an economy ( as rust belt Onterrible will find out)
commented 2017-01-26 20:07:58 -0500
Well…..it would seem that all of those Ponce de Leon fountain of youth “neutraceuticals” that Alex Jones has been taking kicked in all at once……I’m sold………:-)
commented 2017-01-26 19:59:40 -0500
queue, actually. ;o) But who is noticing.
commented 2017-01-26 19:15:44 -0500
It is to be hoped that the Terrible Triplets Notley Trudeau and Wynne see this video.

To the person below who wrote “to the back of the cue” it is que, I will not mention names, being an ex Limey, it stuck out like a sore thumb.

Welcome to The Rebel Alex. How is the UK doing?
commented 2017-01-26 18:33:19 -0500
The confidence in Trumps abilities is very evident despite the nay sayers and cry babies. The markets at all time highs, investment rolling in. people to work, consideration to the importance of strong borders and strong military. All the things people have been been without for years. It’s pretty uplifting stuff.
Welcome Alexander. Look forward to your future contributions.
I hear Theresa May is quite positive about working with Trump. Obama threatened the UK with the back of the trade deal cue if they left Brexit. Trump is vowing a wonderful trade relationship with Britain.
It’s a new day.
commented 2017-01-26 18:29:24 -0500
freedom of speech forever
commented 2017-01-26 18:28:50 -0500
Yes, I had been noticing this effect already. I was laughing to myself about it, just yesterday. I bet it is making the left and anti-Trump twits angry … and that makes me even happier.

All this winning that Trump was talking about is almost getting to be too much … almost.

Welcome to The Rebel, Alex!!