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U.S. Economy is on the Rise Under Trump

<p class&equals;"MsoNormal" style&equals;"text-align&colon; left&semi;" align&equals;"center">Many Americans expect that President Donald Trump&comma; who was a wildly successful businessman prior to winning the election&comma; will be able to pull the U&period;S&period; economy out of its sluggish state&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Although it&rsquo&semi;s pretty early to tell&comma; the investing guru Warren Buffett is optimistic&period; He has seen the economy and housing markets steadily get better&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&&num;8220&semi;Homebuilding will be the best sector this year&comma; in my view&comma;&&num;8221&semi; said Buffett&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Housing prices are up&period; According to the National Association of Realtors&comma; the median price for an existing home&comma; which is now &dollar;236&comma;400&comma; is up by 4&percnt;&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">In terms of financing for a home&comma; the average 30-year mortgage rate is currently 4&period;02&percnt;&comma; which is still relatively low and affordable&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">After Trump took office&comma; 522&comma;000 new jobs have been added and wages have increased by 2&period;5&percnt; in the past 12 months&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Then the government reported that in April the unemployment rate was the lowest it has been since May 2007&period; It dropped to 4&period;4&percnt;&period; The underemployment rate which includes people working part-time that want a full-time position fell to 8&period;8&percnt; in April&comma; which is the lowest this percentage has been since November 2007&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Stocks are up too&period; The Dow is up 6&percnt; this year and the Nasdaq is up 13&percnt;&period; The stock market is expected to continue to climb if Trump does eventually lower corporate taxes and reduce regulations on banks&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Americans are also paying off their debt&period; The delinquency rate on credit cards dropped to 2&period;3&percnt; at the end of 2016&comma; which is significantly less than the 6&period;8&percnt; in 2009&period; However&comma; following the holidays&comma; consumer spending has been stagnant the last few months&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">But&comma; the average gas price has dropped 5 cents over the past two weeks&comma; which arguably could be a good thing in terms of consumer spending&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Although we are already seeing improvements in the economy&comma; trade is still an area of concern&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Trump has continuously emphasized that several trade deals with other countries need to be renegotiated&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;This is perhaps the thorniest issue for Trump&period; He&&num;8217&semi;s been hypersensitive about deals with all of America&&num;8217&semi;s major partners&period; His pledge to &&num;8220&semi;Buy American and Hire American&&num;8221&semi; could put the US at odds with China&comma; Japan&comma; Europe&comma; Mexico and even Canada&comma;&rdquo&semi; writes <em style&equals;"mso-bidi-font-style&colon; normal&semi;">CNN Money&period;<&sol;em> &ldquo&semi;But Trump has good reason to be worried&period; The US trade deficit has narrowed only slightly in the past few months &&num;8212&semi; and the gap has widened with China and Mexico&period; And the overall trade deficit is still significant &&num;8212&semi; &dollar;43&period;7 trillion&period;&rdquo&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal"><strong>Author&rsquo&semi;s note&colon; <&sol;strong>It&rsquo&semi;s only been about 3&period;5 months since Trump was elected&comma; but it&rsquo&semi;s safe to say that the future of the economy looks much more optimistic than when Obama was in office&period;<&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;

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