President Trump has credited himself for the rise in the stockmarket since he won the US election 12 months ago.

It is not fake news. Demand for equities has been strong because it is hoped the Trump administration will pass legislation reducing tax for companies, which should boost their profitability.

Since the election on 8 November 2016 US stocks have risen by 22.1%. The S&P 500’s most recent all-time high of 2,581.07 was set on 27 October 2017.

It’s not just US stocks that have been buoyed. Global stocks are up 21.2% in the past year, as measured by the MSCI World index, and at all-time highs too.

It should be noted that markets are in the midst of a bull run that is in its ninth year. The S&P 500 is up 281% since its March 2009 low, equating to average annual rise of around 18%.

Stocks have recovered from the global financial crisis and continue to benefit from loose central bank monetary policy and low interest rates.

Markets rose fastest immediately after the election with investors buying into the “Trump trade” – the hope of tax cuts and policies that would boost spending, such as on infrastructure, and create inflationary pressure, which can make equities more attractive.

Trumps pro-business proposals included:

Lower corporate taxes
A repatriation tax holiday - a tax break on overseas profits
Massive infrastructure spending
Financial deregulation

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