The Dow Jones Industrial Average is currently on pace to record its strongest June since 1938. Similarly, the S&P 500 is on track to match its best June since 1955. Month-over-month data shows that the Dow is up by 7.8% and the S&P 500 7.3%, respectively, according to Fortune magazine.
June has so far proven to be a high point for market trends in 2019, though the entire year is up by significant margins. The Dow has seen a 14.7% uptick from 2018, while S&P has surged by 17.8%. June contributed largely to both gains.
President Trump has touted himself and the work of his administration for the stock market surge, tweeting, “Stock Market is on track to have the best June in over 50 years! Thank you Mr. President!”
Stock Market is on track to have the best June in over 50 years! Thank you Mr. President! @WSJ
— Donald J. Trump (@realDonaldTrump) June 22, 2019
Some on Wall Street are less sure that the president should take so much credit. Chief investment officer of Wilmington Trust, Tony Roth, noted a 5% pull-back in the month of May, saying, “Much of what we’re seeing in June is a rebound of the sell-off we saw in May.” He further commented that the market does not trust tariff plans made by the president. He said, “The market doesn’t believe Donald Trump’s threat to impose new tariffs. If he puts the tariffs on, then he’s dead, politically. If he does, the market has a long way to fall to price that in.”
Others feel that the economy under Trump should be considered stable. Chief investment adviser at Intercontinental Wealth Advisors, Alfredo La Rosa, told Fortune, “Although geopolitical risks are high and may not recede in the near term, economic fundamentals remain strong and equities are still very attractive relative to fixed income securities.” He went on to express confidence that the market increases were the sign of a healthy economy.
Author: Ellie Bufkin
Source: Washington Examiner: The Dow is posting its best June performance since 1938