Trump's economic policy falter: only 37 percent approval!

Trump's economic policy falter: only 37 percent approval!

USA - President Donald Trump faces an alarming decline in his support values, as a current survey shows. According to OE24 , only 37 percent of Trump's dealing with the economy surveyed. This number represents a significant decline, because even after its inauguration, the consent was 42 percent.

During his first term, the approval rate fluctuated between 45 and 55 percent. However, the new survey shows that around two thirds of the respondents are concerned about the stock market. These uncertainties, especially in relation to customs policy, have led to a noticeable decline. 76 percent express concerns about the risk of recession, while 56 percent Trump's economic measures perceive.

Current approval rate and their effects on the stock market

Trump's current general approval rate is 42 percent and thus exceeds that of President Joe Biden, who has proven to be lower during the majority of his term. However, it is important to note that Trump's popularity must be considered in the historical context; His current approval rate of 47 percent corresponds to the lowest of all presidents since the Second World War, with the exception of his own when taking office in 2017, such as finanzen.net reported.

An analysis by Ned Davis Research illuminates the inverse relationship between the president's approval rate and the stock market profits. Accordingly, rising stock market profits often develop their effects in phases of falling popularity of the incumbent. Historically speaking, the Dow Jones Index shows an annualized return of 10.4 percent in phases with an approval rate between 35 and 50 percent. In weeks with an approval rate of over 65 percent, on the other hand, the annualized return is only 2.4 percent.

election cycle and economic uncertainties

The upcoming US presidential elections could also have a significant impact on the stock market. As ig.com , the election cycle consists of four phases: post-election year, interlection year and election year. Rendites are usually highest in the pre-election and election years, while the post-election and intermediate election years are often shaped by uncertainty.

In 48 presidential counts since 1833, the market development showed that pre-election and election years usually cut better than the other years. These trends illustrate that economic uncertainties, wars and bear markets can often occur in the first half of the legislative period, while a flourishing economy is typical of the second half of the cycle.

The current situation suggests that Trump's economic measures and his falling popularity could not only affect his political future, but also the trust in the markets. This will continue to employ investors, while the uncertainties in the political environment are worrying.