Why the huge stock market gain is so significant

CNBC:
Donald Trump lifted the Dow Jones industrial average in his first year in office more than any other president since Franklin Roosevelt.

The Dow has surged more than 31 percent since Trump's inauguration on Jan. 20, 2017. That marks the index's best performance during a president's first year since Roosevelt. The Dow skyrocketed 96.5 percent during Roosevelt's first year in office.

"This is all about policy," said Bruce Bittles, chief investment strategist at Baird. "You've got lower taxes, less regulation and confidence in the economy is high. Things are firing on all cylinders."

Trump quickly moved to cut regulations enacted by previous administrations. He also successfully pushed to overhaul the U.S. tax code. That revamp included slashing the corporate tax rate to 21 percent from 35 percent.

The president made it to the White House saying he would "put America first." Since taking office, Trump has pushed to have companies bring back jobs to the U.S. and has said repeatedly said his policies would help to accomplish this.

These policy and rhetoric shifts have helped the so-called old guard of the stock market rally.

Shares of Boeing and Caterpillar — both founded in the early 1900s — are up 115 percent and 82 percent, respectively, since Trump entered the White House. They are also the best-performing Dow stocks since Trump took office. These companies benefit greatly from lower taxes and less regulation, and tend to rise the most when people believe the economic cycle is accelerating.
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There is more.

The significance of this move by the markets is that stock investments are made based on the expectation of future gain.  They are betting on future economic performances driving up the value of their investment.  The Caterpillar gain is also likely based on the need for their equipment for infrastructure projects that Trump has proposed.  As the economy improves it is also likely to lead to more business travel which means airlines will be adding planes which means work for Boeing.

The stock market is about the future and Republicans should be telling voters that Democrat policies will hurt future performance and drag the economy back to the failures of Obamaism.

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