The End of Trump’s Economic Boom?

Dow+Jones+Industrial+Average+2008-2017

PolitiFact

Dow Jones Industrial Average 2008-2017

Braden Rice, Staff Writer

In 2008, the economy went into a deep recession and the value of stocks in the stock market plummeted.  Although, the economy and value of stocks have been steadily growing over the years.  In the graph from PolitiFact shown above, you can see this change.  The Dow Jones Industrial Average has reached 90 consecutive record breaking highs since Donald Trump was elected on November 8, 2016, showing the most economic success in such a short time since the Roaring Twenties.  Dow Jones is a publishing company that measures the amount of money in the stock market and the average value of stocks in the market.  The stock values are now higher than they have ever been before.  This has translated into other aspects of the economy, with unemployment at its lowest point in decades.  African American unemployment, specifically, is at its lowest point in history at 6.8%.

However, many economists predict it is only a matter of time before the economy goes into another recession and the value of stocks will fall.  Economists have used the recent rise and fall in the total value of stocks as a foreboding sign of this.  For the past few months, Dow Jones has had a 600 point increase one day, and a 1,000 point drop the next.  Although, some economists are skeptical if this is a sign of another recession.  They believe that the investors who pulled their money out of the stock market will invest back in it after some time.  The stock market may begin increasing in value again after investors adjust to the Federal Reserve’s rise in interest rates.  President Trump believes the success of the stock market is just beginning.  He believes American gross domestic product, along with the value of stocks, will continue to increase throughout his presidency.  Only history will tell whether or not the stock market surge will continue.  All we can do now is wait for what will happen next.

 

 

Contibuted By:

www.marketwatch.com/investing/index/djia

www.barrons.com/articles/markets-now-its-a-good-morning-when-not-much-is-happening-1520514617

finance.yahoo.com/quote/%5EDJI?ltr=1

www.politifact.com/truth-o-meter/article/2017/mar/01/did-trump-inherit-mess-8-charts-show-otherwise/