The mainstream media wants to pretend that President Donald Trump doesn’t exist, but unfortunately for them, the cannot hide from the facts: the Trump Effect is touching every part of America, and it’s working for the good.Since the president took office a year ago, stocks have skyrocketed. Businesses, both small and large, are expanding. Employment has increased. The Obamacare mandate is gone. Taxes are being lowered. Government swampers are being fired. Money is flowing freely between families, small businesses, and corporations. And President Trump is just getting started.
The biggest news to further confirm the Trump effect is actually through the housing market. For those who own homes, this is great news for you: homeowners in total have increased their equity wealth $2 trillion. Which means that market values have reached a record-high of $31.8 trillion. And once again, we have President Trump to thank for it!
Americans who are lucky enough to own their own little slice of the ‘American Dream’ are about $2 trillion wealthier this year courtesy of Janet Yellen’s efforts to recreate all the same asset bubbles that Alan Greenspan first blew in the early 2000’s. After surging 6.5% in 2017, the highest pace in 4 years according to Zillow data, the total market value of homes in the United States reached a staggering all-time high of $31.8 trillion at the end of 2017…or roughly 1.5x the total GDP of the United States.
Of course, as we pointed out at the end of November, while staggering, the pricing gains on housing only look to just now be heating up.As the latest housing data shows an uptick in sales, Case-Shiller’s 20-City Composite index surged 6.19% YoY in September the fastest rate of gain since July 2014.
As Bloomberg notes, the residential real-estate market is benefiting from steady demand backed by a strong job market and low mortgage rates. The ongoing scarcity of available houses on the market, especially previously-owned dwellings, is likely to keep driving up prices.
Eight cities have surpassed their peaks from before the financial crisis, according to the report.
All 20 cities in the index showed year-over-year gains, led by a 12.9 percent increase in Seattle and a 9 percent advance in Las Vegas slowest gains in Washington area at 3.1 percent, Chicago at 3.9 percentWith President Trump’s background in business, it should be a no-brainer that we would see amazing economic growth under his administration. And though the mainstream media has spent the past year damning everything that Donald Trump has accomplished, we conservatives know that with his capitalistic views and business mindset, we will continue to grow in wealth, job security, and home equity!
If you add the value of all the homes in the United States together, you get a sum that’s a lot to get your mind around: $31.8 trillion.
How big is that? It’s more than 1.5 times the Gross Domestic Product of the United States and approaching three times that of China. Total U.S. home values have grown $1.95 trillion over the past year more than all of Canada’s GDP or two companies the size of Apple.
Altogether, homes in the Los Angeles metro area are worth $2.7 trillion, more than the United Kingdom’s GDP. That’s before this luxury home on steroids hits the market.
In the New York City metro, total home values equal $2.6 trillion, more than the French economy and enough money to buy 8,494 Boeing 787-10 Dreamliners.Among the 35 largest U.S. markets, the greatest total home value growth happened in Columbus, Ohio, which gained 15.1 percent to $152.3 billion enough to buy 634 million club seats at Friday’s Cotton Bowl game between Ohio State and USC which, you know, don’t exist.
Renters spent a record $485.6 billion in 2017, an increase of $4.9 billion from 2016. Renters in New York and Los Angeles spent the most on rent over the past year. These markets are also home to the largest number of renter households.
San Francisco rents are so high that renters collectively paid $616 million more in rent than Chicago renters did, despite there being 467,000 fewer renters in San Francisco than in Chicago.
“I think this has been more fundamental than anything,” said Mike Bailey, director of research at FBB Capital Partners. “It’s been mostly about earnings.”
Nick Raich, CEO of The Earnings Scout, said corporate earnings growth came in above historical trends in the first half of the year. Earnings for the S&P 500 grew by 15 percent in the first quarter and by more than 11 percent in the second quarter, Raich said.
Earnings growth was stuck in the mud for most of last year, falling for three straight quarters before growing more than 9 percent in the fourth quarter.While this year’s phenomenal earnings growth may not be a direct result of Trump’s election, it has increased investors’ appeal for defense stocks.
The iShares U.S. Aerospace & Defense ETF ITA has risen 30 percent since the election and is up 20 percent in 2017 as Trump’s election has heightened geopolitical tensions.
On Sept. 3, North Korea conducted a successful hydrogen bomb test, about a month after Trump said the Asian country’s threats would be met with “fire and fury.”
All that said, renowned hedge fund manager Jim Chanos said giving Trump credit for the market’s rally is a “stretch.” Instead, he noted on CNBC’s “Fast Money Halftime Report” on Tuesday that equities around the world are in a “synchronized bull market.”