Despite the flat market today, from my point of view (which is that of relatively young guy), I believe the fundamentals of the economy appear to be strong.
Here in Phoenix, you can actually see the economy chugging along: simply by looking at the construction of new freeways and the sale of new homes. Also, the remodeling and resale of old homes as well as the great number of people who are moving here from other states. On a national level, you can see it by the fact we are at or near full-employment.
It wasn't always like this. When Obama took office in 2009, the economy was in free-fall. Thankfully, among other actions, Obama injected the stimulus into the economy, bailed out the American auto industry, and passed regulations so Banks wouldn't make the same mistakes that led to the '08 crash.
All of which brings us to Trump, and what exactly is he going to do to keep the economy going. If we look at his track record of legislation up to this point, I don't think Trump's gonna do much, but we'll see.
What I am afraid of, is what the negative effect of Trump not doing much is going to have on the psychic of the consumer and thus the economy.
My previous point (above) is the main premise of an article in the NYTimes business section today (link below):
https://www.nytimes.com/2017/07/04/upshot/confidence-boomed-after-the-election-the-economy-hasnt.html?mcubz=2
The article states that despite strong consumer optimism, the economy hasn't had concrete economic gains. Most importantly, at the end of the article the author finds a clue in the partisan breakdown of sentiment surveys; much of the boom in consumer confidence after Trump was elected was due to "conservatives feeling more giddy about their side winning".
Conservative sentiment aside, as I said at the beginning of my post, I do believe the fundamentals of the economy are strong. But what'll happen next is what worries me: the republicans control all branches of government (President, House of Representatives, as well as the Senate) and they have a strong economic foundation on which to build on: will it mean better wages? Better education? Better healthcare? Since I'm not a conservative I'm not too optimistic thus my "consumer confidence" is low.
But I do hope I'm wrong.
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