Wall Street wasn't initially sold on a President Trump — typically markets hate uncertainty and he seems to bring it by the metric ton. But, it's been a solid first-quarter performance for the market since Trump was elected, with all three major indexes — the Dow, S&P 500 and Nasdaq — hitting new highs in recent weeks as traders cheered Trump's pro-business agenda.
"I've made a million dollars since the election," a managing director at a bulge-bracket firm said. "Our stock is up every day."
And, when traders are making money … they're also spending it. There's a direct correlation between finance professionals' day-to-day business and their discretionary spending. Luxury or high-end items, such as automobiles and entertainment usually get a boost when Wall Street is feeling good.
Back in October I polled about a hundred bankers, traders, analysts and portfolio managers about spending for a little something I call the "escort indicator" — a gauge of discretionary spending on everything from fancy cars to escorts. A whopping 80 percent said they preferred saving in the current environment amid all the uncertainty surrounding the presidential race. So, I reached back out to them to see if, now that Donald Trump is president and embarking on a pro-business agenda, their opinion has changed. And 30 percent said they've increased their spending.
We've yet to see a big pickup in spending on pricey toys like expensive cars and boats, but several industry guys said they're in the market for classic Ford Broncos for the summer. The most expensive car mentioned that was recently purchased was a 2016 Aston Martin DB11 for over $200,000.