At least, they did in the US. On Wednesday, the Dow Jones enjoyed its best day in two years, while the S&P 500 and Nasdaq broke fresh all-time highs.
That’s because US investors expect Trump to light a rocket under share prices once he enters the White House in January.
He’ll boost economic growth by slashing corporate taxes, red tape and government spending.
Which is the exact opposite of what Labour is plotting under Keir Starmer.
Instead of talking up the UK economy, Starmer has talked it down at every opportunity. He’s destroyed business confidence by warning things will get worse.
In last week’s Budget, chancellor Rachel Reeves hiked taxes, red tape and government spending, while borrowing an extra £32billion.
So how did that work out for us?
While Wall Street booms, London has gone limp.
Over the last six months, the S&P 500 has shot up 14.80%. The FTSE 100 has fallen 4.28%.
Trump has US investors bouncing. British investors are a glum bunch. Most have given up and are pumping money into US shares instead.
You can’t blame them.
If someone invested £10,000 into US shares a decade ago they’d have a thumping £42,248 today, AJ Bell calculates. The FTSE All-Share turned £10k into just £18,186.
Trump and Starmer also have entirely different approaches to energy policy.
Trump is going flat out to maximise US shale oil production, a policy known as “drill baby drill”. US gas prices will plummet as a result, making Americans feel richer.
UK energy secretary Ed Miliband is blocking new North Sea oil exploration licences and throwing money at unproven green tech such as carbon capture and storage.
The US economy will soon be running red hot, while the UK will be taking a cold bath.
It will get even colder if Trump slaps punitive tariffs on British exports.
Yet weirdly, both US and UK policies will take us to exactly the same place. By reviving inflation just as it was starting to fade.
Trump’s boom will cause the US economy to overheat, sending prices soaring. Labour is firing up inflation with its tax hikes and public spending surge.
The Office for Budget Responsibility and Bank of England have both warned of the danger. Labour isn’t listening.
Reeves is also planning to borrow £300billion this year. Bond market will demand a higher return to buy yet UK debt.
That will drive up interest rates and borrowing costs. Thursday’s Bank of England base rate cut may be the last in a while.
The US stock market will enjoy the mother of all booms but ultimately it will end in a bust.
The UK market faces the same bust, only without the boom.
Trump and Starmer have one thing in common. Neither will take control of their country’s budget deficits. Our respective national debts will continue to grow.
The US and UK are both charging towards yet another financial crisis, we’re just taking different routes to get there. At least the Yanks will have some fun along the way.
