While many people (including this writer) have been too quick to dismiss the “animal spirits” following the election of Donald Trump, something has been happening beneath the surface — economic growth has been accelerating. The Conference Board Leading Economic Indicators have shown a strong pick-up in recent months, which matches what my own leading indicators have been predicting — an economy that could finally be on the verge of surpassing the 3% long-term average that has been so elusive during the “Obama recovery.
Don’t get me wrong, I still think the bulls are way too far ahead of the “good” Trump policies and are completely ignoring the bad, but it’s hard to ignore the strengthening economic outlook. Of course this means the Fed could be standing with the Congressional Democrats (and the mainstream media) in opposing President Trump’s growth objectives. Who will win? I guess time will tell.