The 100 day mark for Trump's presidency is coming up and the president has not delivered on his 28 point commitment program that he made when he took office. North Korea is distinctly unhappy with ten U.S. and threatening to blow it up with a major missile strike. It may seem like things are not going good for the United States but one silver lining this week may make all the difference. The UBS Investor Watch report states that a good majority of investors think that the U.S. economy is strong enough to warrant their confidence and this has happened since the elections in 2006. This is news indeed for investors, of course, but also for the nation, as a whole because it indicates confidence in the country's economic resilience.
Over half the investors believe Trump is good for economy
Despite all the criticism that the president has been garnering for his actions as well as talk, it seems that investors are solidly behind the White House incumbent. Among investors, about 58% think that the economy will benefit from Trump's governance. In December, only 54% of investors expressed confidence in the economy strengthening under the current government. Slightly less than half, about 47%, are happy with the performance so far of the Trump administration. But look a bit deeper and you can see that the Republicans among those surveyed are firmly with the government but not so much the Democrats. This is to be expected, given their political affiliations.
Stability and Clarity are viewed as critical
One interesting aspect that came out of the survey is that investors appear to want better stability from the White House and also more information and clarity on exactly what the stance will be, going forward, regarding priorities for the Trump government. In particular, the investors believe that more clarity on the future stance will help them make more judicious investment decisions.
There is a clear favor for tax reforms and if the Trump administration does bring those in, they will win the hearts of investors for sure. However, given the many obstacles that the plan to scuttle Obamacare has been facing, any major moves in the tax reform arena seems to be unlikely to materialize soon. More or less, though, the investors seem to agree that the Trump administration will achieve its goals with respect to the economy.