Investors have enjoyed a robust stock market in 2019, with a rallying pattern holding since the start of the year. Major indexes are up, and there has been positive movement across everything from the big growth stocks to the smaller bargains.
While investors have enjoyed significant growth since the end of the last economic recession, President Trump believes the numbers would be even higher if the Fed would take a different approach to monetary policy.
How much higher? Up to 10,000 points according to the Commander in Chief.
Stock Market Weekend Tweet Brings Criticism
President Trump has made no secret of his disappointment for the Federal Reserve and the job that it has been doing in the last two years. Many investors would agree that the Fed severely hindered stock market growth in 2018 with overly aggressive rate hikes and premature fears for a recession that just doesn’t seem to be coming.
Trump took to Twitter over the weekend, telling his followers that “If the Fed had done its job properly, which it has not, the Stock Market would have been up 5000 to 10,000 additional points, and GDP would have been well over 4% instead of 3%… with almost no inflation. Quantitative tightening was a killer, should have done the exact opposite.”
How Far Have Stocks Come in Two Years?
Major indexes are great indicators of stock market performance, but they don’t tell the full story in terms of growth. There’s much more to the market than just the popular large caps.
The Wilshire 5000 (W5000) is an excellent benchmark index, which tracks all publicly traded stocks in the United States. Wilshire Associates, the investment management firm that created the index, has tracked total market growth at 35.6% since the 2016 election. This is the equivalent of $9.1 trillion in growth.
Despite this being one of the best periods ever for the stock market, the President and other financial experts believe there could be much more to celebrate if the Fed would ease its monetary policy. In the first week of April, the President had a similar message to his recent tweet. Speaking of the economy and stock market, the President said that “I would say in terms of quantitative tightening, it should actually now be quantitative easing. You would see a rocket ship [of market growth].”
With the Federal reserve now holding interest rates, investors could see impressive returns from the market in 2019. A rally has continued throughout this year and stocks were still strong at the close on Friday. Positive trade news and continued economic growth could make this quarter and the final quarters of the year some of the best on record.
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