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The Investors Have Spoken

Vintage toned Wall Street at sunset, Manhattan, New York City, USA.

As Americans across the country sat around their television screens on the night of November 7, 2016, nervously watching the electoral votes pour in in Trump’s favor, emotions ran high on both sides of the aisle. As conservatives began to gain confidence in their candidate, smiles slowly began to appear on their forlorn faces. As liberals started to register their loss, screenshots of ugly criers began to make the news.

Businessmen like myself, on the other hand, had an entirely different reaction. My first task was to check the stock market. Because the world had assumed Clinton had the election in the bag, investors were completely unprepared for a Trump victory. This led to an immediate crash, which did not look good for our president-elect.

However, recent news has shown a more positive trend. As soon as December 7, USA Today published an article stating:

The Dow Jones industrial average jumped 297.84 points, or 1.6%, to an all-time closing high of 19,549.62. The Standard & Poor’s 500 index jumped 1.3% to a record close of 2241.35. The small-stock Russell 2000 index gained 0.9% to an all-time high of 1364.51. The tech-heavy Nasdaq composite index rose 1.1% to 5393.76, about 5 points shy of its record close.

-Jay, Marley. “Dow Soars about 300 Points, Notches 12th Record Close since Election.” USA Today. Gannett Satellite Information Network, 07 Dec. 2016. Web. 23 Dec. 2016.

Clearly, investors have faith in Trump after all. Either that, or they had so little faith in Clinton that they were ecstatic to see anyone else take office.

The truth is, while Trump might have a questionable personal life, nobody can deny that he knows how to run a business. Furthermore, because he owns multiple businesses, one would expect that he sympathizes more with business owners, executives, and even the average worker. This is something we can’t say about our current president, who might need to retake a few economics classes.

While our current president wants to tax the wealthy to give it to those who don’t feel like working, Trump has touted some tax cuts for everyone. Such tax cuts, combined with less restrictions, allow business owners to see more growth and, therefore, employ more people. With those results, the economy grows in general because everybody is working. Do you see where I’m going with this? A better economy leads to happy investors. It’s all connected.

While I can’t promise that this was going through investors’ minds post-election, I can say one thing very confidently: businesses seemed to decide which candidate would support them. They decided which candidate would keep them in business, allow them to employ more people, and allow them to keep this economy running. They decided, by their votes, that Trump’s opponent would shut them down, go for the jugular, and crash the economy. This isn’t me making this declaration; it’s business.

Therefore, whether we tend to lie on the right or left side of the aisle, there is one thing that none of us can deny: the investors have spoken.

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