The data is overwhelming – Americans are bullish on the U.S. economy. The polling on the economy is not a Trump poll or a conservative poll but comes from the heart of the liberal establishment media. CNBC announced that respondents are above 50% in rating the economy as good or excellent for the first time in 11 years.
It’s not just polling, but real-life data: Manufacturing is returning jobs to the U.S. and new plants are being built. Apple has already committed to $100 billion in repatriated cash being invested in the U.S. economy. Businesses have been giving bonuses across the country. This optimism has not been seen in decades.
In the same CNBC survey, President Trump’s approval ratings also bumped up to 42%. That is historically low for the first year in office. However, they are not the worst numbers ever and he’s not the only President with a low number in the first year (not ever mentioned by the media was that Bill Clinton reached the record low 37% in a Gallup poll in June 1993, his first year in office). These numbers come during a highly polarized, media-saturated time in American history. But the President’s fortunes are always tied to one thing – economic performance. To quote the infamous Bill Clinton advisor, James Carville: “It’s the economy, stupid.”
As CNBC stated while releasing the findings of the poll, “Americans are finally putting the recession behind them in terms of their attitudes about the economy, and it took a change in political leadership” to make that happen. (Micah Roberts, Democratic-leaning pollster Public Opinion Strategies).
I. Data reflects soaring optimism over the American economy!
- 42% of Americans expect their wages to go up, highest since 2007.
- 41% expect the value of their home to go up, highest since 2006.
- 51% believe the economy is doing good or excellent, and 56% believe it will improve even more in 2018.
But it wasn’t just the CNBC/POS polling that confirmed this buoyant mood regarding the economy.
II. Consumer confidence now at record highs!
- IBD/TIPP poll shows consumer confidence now at 55.1%, up 6% since December. January 2008 this number sat at 44% and dipped to a range of 39-41% from 2011 through 2014.
- Same poll shows 6-month confidence level at 55.5%, up 11% since January 2017.
- Personal Financial Outlook sits at 64% ‘GOOD’, up 8% since January 2017.
Dare we say – “Morning in America?”
The Reagan years were the last great decade of naturally driven growth, where all sectors of the economy were expanding – manufacturing, the service sector, finance, telecom, technology, the professions, agriculture. The 90s were not stimulated by the government but were highly concentrated in technology growth and what would become the dot.com bubble. The 2000s boom was driven by real estate speculation and bad government policy, resulting in the banking collapse. The stock market growth and anemic-to-flatline GDP growth during the previous Administration was from bad government policy and unconstitutional state intervention. Finally, at long last, we may be seeing the natural order of free markets returning to normal – government gets out of the way, and capitalists provide prosperity for all of us. People are feeling and seeing the proverbial “light at the end of the tunnel.”
The fact is: markets go up and down. Take advantage of these historic gains and put a wall of protection around your money with principal protected products. If you want to have your money safe from stock market losses and earning a reasonable rate of return, give us a call. Our advisors at Ty J. Young Inc. keep it simple. Call us for a free financial review at no cost or obligation! 877-912-1919