Dow hits 20K milestone — and investor optimism surges

As the Dow crossed 20,000 for the first time last week, a new study of wealthy American investors by UBS Wealth Management Americas (WMA) showed the economic outlook has improved by 50 percent since the surprise election of Trump — with more than half of investors overall busy looking for places to invest.

Both nationwide and in the president’s backyard, investors on both sides of the political aisle are in a much brighter mood, the study reveals.

Trump supporters are almost ecstatic, with 90 percent optimistic about S&P 500 returns in the next six months, compared with 44 percent of Hillary Clinton voters.

Stock market optimism across party lines has shot right up — from 25 percent before the election to 68 percent in January.

And in New York, 61 percent of investors anticipate strong returns for the S&P 500 in the coming six months — up from a wishy-washy 33 percent of investors before the election.

Meanwhile, 38 percent of Big Apple investors say they haven’t felt as optimistic since the financial crisis. “If the recent optimism continues, it will bode well for the markets and the economy,” according to Paula Polito, Client Strategy Officer of UBS WMA.

This surging optimism comes on the heels of a separate electronic poll of professional stock and securities traders conducted by Traders Magazine, prior to the Dow’s 20,000 breakthrough. Some 70 percent of respondents agreed that this closely watched Dow index would break and hold above the 20,000 mark in 2017.

So what’s fueling their spirits? The UBS study says about 70 percent of US investors favorably point to Trump’s pro-business policies, lower personal and corporate taxes, regulatory policies and infrastructure talk.

“After years of caution following the financial crisis, we are finally seeing the tide turn,” Polito said. “Investors are more willing to move cash off the sidelines and increase investments, while business owners are set to increase capital spending and hiring.”