One year since Trump was elected president
Trump has been President for a year, and love him or hate him, the stock market has been on fire.
How did Trumps Dow return of 28% stack up historically?
I don't take credit for this, but CNBCs Dominic Chu did rank the top 5 presidents when it comes to 1st year stock market performance (as measured by the Dow).
The top 5 are:
- 48% - Franklin Roosevelt
- 31% - Harry S. Truman
- 28% - Donald Trump
- 25% - Lyndon Johnson
- 23% - George H.W. Bush
Chu also highlighted the contributions of the high flyers to the S&P gains. He reports that the top 5 gainers over the last year, contributed 28% of the S&P's gains in Trumps first year:
- Apple was responsible for 9.4%
- Microsoft 5.2%
- Facebook 4.6%
- Alphabet 4.5% and
- Amazon 4.3%
That is a lot of concentration in a few.
Chu finally reported that the 50 largest capitalization fundamental funds returned 20.8% over the last year. That compares to composite benchmark of 17.9%. So it was the year of the stock picking manager. Pay them an extra bonus in 2017. The problem is they tend to get paid pretty well when they don't so great....
Technically, (and this is my contribution), the Dow only closed a handful of days below its 50 day MA and zero days below its 100 day MA. Moreover, the distance between the index and the 50 day MA is was only wider in December 2016 and again in early March (the blue lines in the chart are the distance from the MA currently). Overbought? Maybe, but it is hard to pick a top in US stocks.
Anyway, how'd your retirement account do?
Thank you President Trump.
