Trump’s victory this time saw the US stocks rise on the day he emerged winner and post “their best weekly performance all year”. If Donald Trump’s narrow win shook the United States in 2016, the scale of his victory now has amazed the country into silence. Equally amazing is how the US market reacted to his win now as compared to 2016.
And how did the economists trash him in his first term and how silent are they now. Unravelling these conundrums will bring out that the explosive pro- and anti-Trump campaigns are not just a battle between two economic or political ideas but a larger war. A war between two Americas – the America of its founding fathers and the America that breaks their statues.
It calls for a deeper and at the same time a high helicopter view to demystify the forces at work in the US. Villain becomes hero In 2016, Trump was universally seen by liberal media and economists as a villain. No surprise therefore that when the news of his victory trickled in on 7th November night, US stock futures plummeted, Dow Jones dropped 800 points, markets went into a tailspin.
But shockingly in the next 24 hours they rebounded to higher than 48 hours before. From November 9, the stocks began the famous “The Trump Rally” that lasted till early 2017. Once a villain, Trump became a hero.
The rally, said economists, was because the market was positive to Trump’s declared policies of tax cuts, infrastructure plans, and deregulation to spur economic growth. But Trum.
