The Dow Jones hit another major milestone this week. The heralded 22ooo mark hit and held in heavy trading this week and this is a big deal. There was mush speculation that the Dow would never hit this historic mark due to several factors. There was the specter of a criminal investigation into the Whitehouse collusion with Russians. Another hiring and firing at the State Department. President Trump having a messaging issue with the Boy Scouts and oh yea there was this issue of Jim Acosta being lampooned by the Presidents Press Secretary during a whitehouse presser.
All of these things seem to not have any effect on the Dow Jones and trader expectations on the US economy. The jobs report that came at by weeks end showed that an expected hirings estimate of 186,000 jobs was smashed by a reported claims report of 209,000 jobs. Unemployment is at 4.3% and the trade deficit was coming down from the previous administrations reports.
This was all that Wallstreet needed to hear. The market roared to the historic level of 22000 and stayed there all day. This seems to be just was the commercial markets wanted to hear. Unlike many in the media, the bread and butter issues have been what Mainstreet is interested in. And as entrepreneurs this has huge implication for you too.
Check your 401K, IRA and other saving instruments in the last 6 months. Since the Trump administration has taken the helm you will have seen a marked uptick in the return on these savings instruments. The marked is getting so heated up that the former head of the Fed. Alan Greenspun is warning that there needs to be a raise of the Federal Interest rates. That means that the economy is beginning to really take on some steam.
In the final analysis, the markets have spoken. Our economy is in a period of growth like we have not seen in the past 20 years. Under the Trump administration, like his communications issues or not, the US economy is on a tear. We are seeing job growth, stock growth, trade parity and an expected tax policy in the future that will add more wood to the fire.
Black Success Magazine