The US
Stock prices continue to increase at historic rates over the past 3 years under
the Trump Economy.
Dow
Closing Average 3Yr Increase
Gains
Jan 17
2020 29,347.08 8292.24
40%
Jan
1 2017
21,016.21
NASDAQ
Closing Average 3Yr Increase Gains
Jan 17
2020 9,388.94 4006.82 74%
Jan 1
2017 5,383.12
S&P
500 Closing Average 3Yr Increase Gains
Jan 17
2020 3329.49 918.45 38%
Jan 1
2017 2411.04
S&P
500 Up 17.8% - The S&P 500 Average closed in 2018 at 2743.21 and increased
in 2019 to 3230.78, up 487.57 points from 2018. That’s a 17.8% increase. The S&P 500 Average is up 46.7% since
2017. That’s up 1136.13 points from
2094.65 to 3230.78. The S&P index at 8AM on 1/17/20 is 3316.81.
Year S&P Ave
Increase Gains
2020 3329.49
99.71 Trump
2019 3230.78
487.57 17.8% Trump
2018 2743.21 314.13
12.9% Trump
2017 2429.08 334.43
16.0% Trump
2016 2094.65 33.58
1.6% Obama
2015 2061.07 129.69
6.7% Obama
2014 1931.38 287.58
17.5% Obama QE
2013 1643.80 264.19
19.1% Obama QE
2012 1379.61 239.64
21.0% Obama QE
2010 1139.97 191.92
20.2% Obama QE
2009 948.05 -271.99 -22.3%
Meltdown
2008 1220.04 -257.14
-17.4% Bush
2007 1477.18
166.72 12.7% Bush
2006 1310.46
The
Mortgage Meltdown in 2008 resulted in drops in the S&P in 2008 and 2009. It
was caused by Democrat initiated anti-discrimination laws requiring banks to
give mortgage loans to unqualified buyers. Mortgage defaults cause dollar
liquidity to freeze and the US Federal Reserve printed and provided $4 trillion
to the banks. This printed money was called “Quantitative Easing” (QE). Banks lent this money to day traders, who
invested it in the stock market.
The
S&P 500 Average Closing Price 2000 to 2019
2000
1427.22
2001
1192.57
2002 993.93
2003 965.23
2004
1130.65
2005
1207.23
2006
1310.46
2007
1477.18
2008
1220.04
2009 948.05
2010
1139.97
2011
1267.64
2012
1379.61
2013
1643.80
2014
1931.38
2015
2061.07
2016
2094.65
2017
2429.08
2018
2743.21
2019
3230.78
The
S&P index includes Dow 30 companies. 401k investments that include stock
are earning very high returns.
The US has
over 160 million employees working. If half of these or 80 million have 401k
plans, they have gained over 50% over the past 3 years.
If an
employee who averages $50,000 in salary contributes 5% to their 401K plan, they
would invest $2500 a year. Over the past 3 years stock accounts had gains of
over 50%.
If 50
million employees save $2500 in 401k plans, the annual investment in stock
would be $1.25 billion. If divided by 500 companies the average investment is
$2,500,000 per year, per company. Their money goes to providing capital for US
companies.
Congress passed the Revenue Act of 1978 that
created the 401k plans.
US Stock values rose gradually as companies introduced the 401k plans to
employees.
The
S&P 500 Average Closing Price 1978 to 2000
1978
96.11
1979
103.00
1980
118.71
1981
128.04
1982
119.71
1983
160.47
1984
160.46
1985
186.83
1986
236.39
1987
287.00
1988
265.88
1989
323.05
1990
334.63
1991
376.19
1992
415.75
1993
451.61
1994
460.42
1995
541.72
1996
670.49
1997
873.43
1998 1085.50
1999
1327.33
2000
1427.22
Employees
chose in fixed interest investments from the 1960s to 1990, but as inflation
declined so did interest earnings. After 1990, investors began to invest in
stocks. This pushed up stock prices and continues to push companies to produce
profits.
Prior to
1913, companies were family-owned and owners could retain their own profits to
reinvest in creating the Industrial Revolution. After 1913, corporate taxes on
profits reached 90%. After 1980, corporate taxes were reduced and are now 21%
and unnecessary regulations have been removed. The jobs that were off-shored
from 1990 to 2016 are returning to restore the US middle class.
Norb
Leahy, Dunwoody GA Tea Party Leader
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