The investors currently think Trump's deregulations will be great for business. Companies will hire like crazy, causing stock prices to soar. What they don't realize is that eventually the bottom will fall out when businesses start to pay the price for their greed. Other countries will no longer be able to compete or trade their goods which will eventually drive up cost on consumer goods. Inflation will be out of control. Things may look up now but it's only a matter of time before everything plummets.
One way or another, Trump’s policies – not just the economic ones – will have a profound effect on financial markets. It could hardly be otherwise. But there should be no shame in saying the investment implications are currently as clear as mud. it is almost obligatory for economists and pundits to be confident about what lies ahead for investors. If there is a rough consensus, it’s that a big fiscal stimulus in the US would eventually encounter the stiff breezes of a strong dollar and higher interest rates, and there is a risk of a bust one day if Trumpist protectionism becomes truly heavy. That extremely loose working theory seems as good as any.
President Trump's election victory most definitely had a positive influence on the stock market. Before the election, the markets were stuck in a holding patter. Since Trump's November victory, the market has continued to climb higher, with the Dow Jones passing the 20,000 mark today. The Trump factor is real.
The Dow has been steadily rising for a while now, even before Trump took office. As a matter of fact, it had hit record highs under the Obama administration. Trump has nothing to do with the current levels, especially given that he just took office. Give it some time, and then I may be inclined to think of Trump as the reason behind the numbers.