This morning, Quinnipiac released an exhaustive poll on President Trump with one question on the state of the economy. The results are mind-bogglingly positive as 66% of those asked see the current economy as excellent or good from 29% a year earlier.
There is no doubt when most people hear this news they will also hear that most of those asked give more credit to President Obama than President Trump. It’s such a far fetched notion for a myriad of reasons, that an economy that was essentially driftwood, and now rising like a redwood, would be attributed to the driftwood policies.
As for the poll itself, it must be noted by the mainstream media as they attempt to belittle the most important part (economy):
Questions before 'economy' about President Trump's:
The economy has come on like gangbusters under President Trump, and it is building momentum (18% rate excellent in January from 11% in December 2017 and from only 2% in November2016). This is the kind of momentum that doesn’t get snuffed out overnight.
In fact, it’s more likely people will continue to feel better about the economy and take self-fulfilling actions with positive impact.
As for the credit game, there will always be constant media attacks on President Trump, which overemphasize his tweets and underemphasized or ignore his accomplishments. It’s one thing to tell a person holding a clipboard what they want to hear, but its unlikely people would step into a voting booth to reject this new day in America.
Plus, good news continues to pour in from the tax law, and this is going to make a lot of people second guess where credit should go.
Walmart Citing New Tax Law Announcing
Reasons for Investor Optimism
Businesses are growing the top line as total business sales have reversed after drifting lower for two years and are now at record levels.
Stronger top line growth means bigger bottom line profits with yearly increases now for five straight quarters.
Those earnings good times are only just beginning, as estimates (Fact Set) suggest strong earnings throughout 2018. These assumptions were before the tax bill was passed, and already today, we’ve seen the impact with two companies.
Lennar Homes (LEN) is partially intriguing as the company missed in part to a delayed closing of a deal, but lower gross and operating margins were yellow flags as well. Moreover, the effective tax rate edged to 35.5% from 32.7% a year earlier.
The company is going to benefit greatly from a 21% federal tax rate. In addition, the new tax law will help top line revenue growth mentioned in the company press release:
"Our results ... benefited from strong demand for homes, low unemployment, favorable interest rates and increased consumer confidence," Lennar Chief Executive Stuart Miller said in a statement.
"General enthusiasm for the strength of the economy, combined with the added tailwinds of recent tax law changes, continue to propel the housing market forward."
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