The US stock market is thriving despite threats of overvaluation. President Trump seems happy with the progress in stocks. He thinks that everyone is making money in America, except him. The New York businessman who became President in recently hasn’t separated himself from his businesses yet.
Despite, his sons Eric Trump and Donald Trump Jr. are handling day to day operations of the Trump Organization. The President has vested interests. This creates a conflict of interests debate as well, but the President thinks otherwise. He also believes the economy is flourishing while economists are busy wiping the sweat off their foreheads with worrying data.
Trump’s World View
There is no doubt that Donald Trump’s worldview is much different from the rest of the world. In Warsaw, Poland he attended the Three Seas Initiative summit with European representatives. He said, “Personally, I have picked up nothing. That is all right. Everyone else is getting very rich. That is OK. I am very happy.” He told Associated Press that fresh gains have helped investors make money and he is happy about it.
Economists Think Otherwise
A lot is going on the US economy that doesn’t get adequately represented in the stock market. Artificial Intelligence and a growing preference for automation is one of the biggest threats to the US jobs market. Though unemployment is low, the long-term implications of low unemployment are yet to be factored in. Trump promised to bring jobs back to America.
However, companies are finding new ways to eliminate human workforce which would eventually have a bigger impact on US jobs. Lowering human productivity worldwide is enough reason for corporations to focus on automation techniques that get the job done faster and without any sick leaves.
Fed Worried Over Tightening
The Federal Reserve recent minutes show that the officials are worried about tightening policy. The officials stay divided over balance sheet reduction timing. The Feds have already increased interest rates twice this year. Treasury yields/bond yields are going lower, and even stocks are supposedly hyperinflated, according to some analyst.
Donald Trump is right when he says that stocks have helped people get rich. However, he is only talking about a small number of individuals. The economy runs on America’s consumers and its giant corporations which are currently feeling burdened. The new tax codes, reform policies and reformation of Dodd-Frank rules will have long lasting impacts on the economy. Will Trump pay attention to problem areas too?