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Consumer Confidence & Stock Market Soar Following Trump Victory

<p>Consumer confidence has risen to the highest level in nearly a decade&comma; a psychological indicator that Americans have high hopes for Trump&rsquo&semi;s presidency&period; As reported by the Conference Board on Tuesday&comma; the confidence index jumped from 98&period;6 in October to 107&period;1 in October&period;&nbsp&semi;<&sol;p>&NewLine;<p>Most survey results were gathered before the election&comma; but as Conference Board economist Lynn Franco explains&comma; &ldquo&semi;It appears from the small sample of post-election responses that consumers&rsquo&semi; optimism was not impacted by the outcome&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p>We haven&rsquo&semi;t seen numbers like this since July 2007&comma; and the fact that consumers were unbothered by Trump&rsquo&semi;s victory suggests that America does not believe his administration will harm the economy&period;<&sol;p>&NewLine;<p>The survey&comma; which measures confidence towards business conditions&comma; jobs&comma; and personal finances&comma; also suggests that Americans have an optimistic outlook regarding the next six months&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;The election result has had a clear positive impact on sentiment&comma;&rdquo&semi; writes Capital Economics&rsquo&semi; Andrew Hunter&period; &ldquo&semi;It also supports our view that consumer spending will continue to rise at a decent pace over the rest of the year&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p>Consumer spending drives economic growth&comma; which is why the Conference Board monitors things like &ldquo&semi;consumer confidence&period;&rdquo&semi; In fact&comma; this spending accounts for nearly 70&percnt; of US economic output&period;&nbsp&semi;<&sol;p>&NewLine;<p>Americans are not wrong to put their faith in the economy&period; According to government data&comma; the economy grew&nbsp&semi;at a 3&period;2&percnt; annual rate from July to September &ndash&semi; the fastest pace we&&num;8217&semi;ve seen in two years&period; Consumer spending increased at a 2&period;8&percnt; annual rate during the third quarter&comma; squashing estimates of 2&period;1&percnt;&comma; and the unemployment rate has dropped to 4&period;9&percnt; &&num;8211&semi; a figure considered by economists to be &ldquo&semi;full employment&period;&rdquo&semi;&nbsp&semi;<&sol;p>&NewLine;<p><strong>Stock Market Rally&nbsp&semi;<&sol;strong><&sol;p>&NewLine;<p>Wall Street has also benefitted from Trump&rsquo&semi;s victory&comma; with the S&amp&semi;P 500&comma; the Dow&comma; and the Nasdaq reaching all-time highs this week&period;&nbsp&semi;<&sol;p>&NewLine;<p>Far from rumors that the stock market would crash should the real estate mogul win the White House&comma; investors are now hoping that Trump &ldquo&semi;will unleash the US economy by cutting taxes&comma; rolling back regulation&comma; and ramping up infrastructure spending&comma;&rdquo&semi; reports CNN Money&period;&nbsp&semi;<&sol;p>&NewLine;<p>&ldquo&semi;The basis for the rally is optimism about reversing Obama-nomics &ndash&semi; raising taxes and increasing regulation&comma;&rdquo&semi; explains market analyst Peter Boockvar&period;&nbsp&semi;<&sol;p>&NewLine;<p><strong>Editor&&num;8217&semi;s note&colon;<&sol;strong> Despite the protests and whining from Clinton supporters&comma; America is actually a lot more confident now that Trump is President-elect&period; Perhaps we are realizing how bad Obama has been&period;<&sol;p>&NewLine;

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