America's economy can return to the days of 3% and higher annual growth rates if Washington embraces pro-growth economic policies, concludes the latest installment of Pacific Research Institute's Beyond the New Normal series released last week.

"Nothing impacts America's economy more than government economic policy," said Dr. Wayne Winegarden, PRI Senior Fellow in Business and Economics, and co-author of Beyond the New Normal. "Reviewing 60 years of economic policies, we found that when government embraces policies that incentivize growth, our economy grows. President Trump and Congress can bring back the days of 3 and 4% annual growth by enacting a pro-growth agenda."

In Part 4 of Beyond the New Normal, Wayne Winegarden and co-author Niles Chura analyze 4 key economic turning points where changes in the economic policy mix impacted the health of the US economy (covering the periods 1958-1970, 1970-1982, 1982-2001, and 2001-2015). Following a historical review of the economic policy mix during each of these periods, Winegarden and Chura found that:

• Between 1958 and 2015, US economic policy alternated between periods of expanding and declining government influence in the economy.

• Changes in the government's economic policy mix – including fiscal and monetary policy – have impacted the health of the US economy during these periods, alternating between times of weaker structural economic growth and robust structural economic growth.

• The Trump Administration would be wise to take a long-term economic view, embracing a policy mix that adds long-term value to the economy. They should avoid the temptation to use economic policy to manage short-term economic conditions, stimulate growth during recessions, or reduce growth during expansions.

• Policies that create growth-enhancing incentives, production efficiency, and prices that accurately reflect supply and demand encourage strong economic growth. These polices were in place during the 1960s, and the 1980s through the 1990s.

• In contrast, policies that distort prices, decrease the incentive to take risks, and increase government spending discourage growth. These policies have been in place since 2001, and were also prevalent during the 1970s.

Beyond the New Normal is a multi-part study by Dr. Wayne Winegarden and Niles Chura, which makes the case that future US economic growth can meet –or exceed – past growth trends if the right economic policies are adopted.

Dr. Wayne Winegarden is a Senior Fellow in Business and Economics at Pacific Research Institute. He is also the Principal of Capitol Economic Advisors and a Managing Editor for EconoSTATS. Niles Chura is the founder of Ouray Capital.

(Source: Pacific Research Institute)

Trump administration recently announced plans to expand offshore oil drilling in US waters, threatening recreation, tourism, fishing and other coastal industries, which provide more than 1.4 million jobs and $95 billion GDP along the Atlantic coast alone. The executive order directs the Interior Department to develop a new five-year oil and gas leasing program to consider new areas for offshore drilling. The order also blocks the creation of new national marine sanctuaries and orders a review of all existing sanctuaries and marine monuments designated or expanded in the past ten years.

"Our ocean, waves and beaches are vital recreational, economic and ecological treasures that would be polluted by an increase in offshore oil drilling, regardless of whether or not there is a spill," said Dr. Chad Nelsen, CEO of the Surfrider Foundation. "With today's action, the Trump administration is putting the interests of the oil and gas lobby over the hundreds of communities, thousands of businesses, and millions of citizens who rely on the ocean and coasts for their jobs and livelihoods."

New offshore drilling would threaten thousands of miles of coastline and billions in GDP, for a relatively small amount of oil. Ocean tourism and recreation, worth an estimated $100 billion annually nationwide, provides 12 times the amount of jobs to the US economy, compared to offshore oil production. Even under the best-case scenario, America's offshore oil reserves would provide only about 920 days, or 18 months supply of oil at our current rate of consumption, according to federal agency estimates.

"Tourism drives our local economy, and the approval of offshore drilling poses a huge threat to the livelihood and quality of life in our beach community," said Nicole D.C. Kienlen, Tourism Director of Bradley Beach, New Jersey. "The effects would be devastating on multiple levels."

Even when there are no accidents, offshore oil drilling seriously pollutes our water and food supply at every stage. The ground penetration, the drilling, the rigs, and the transportation tankers all release toxic chemicals and leaked oil. The standard process of drilling releases thousands of gallons of polluted water into the ocean. High concentrations of metals have been found around drilling platforms in the Gulf of Mexico and have been shown to accumulate in fish, mussels and other seafood.

"The Trump administration wants to pour money in to a sinking ship with relatively small return, instead of supporting growth industries like coastal tourism and renewable energy that are adding jobs to our economy," said Pete Stauffer, Environmental Director for the Surfrider Foundation. "We will stand up for what's best for the nation, and our oceans, by fighting new offshore drilling off our coasts."

(Source: Surfrider Foundation)

Written by Mihir Kapadia, CEO and Founder of Sun Global Investments

Over the last month, there has been strong optimism on US stocks due to Donald Trump’s infrastructure plans and spending proposals, or what is termed the “Trump trade” pushing up the prices in the markets and the financial sectors. To some extent, this is business as usual as Republican presidents are often greeted with a stock market rally. This generally lasts about 6 weeks before a re-assessment is usually made.

In purely economic terms, there are two broad strands to Donald Trump’s policies. On the domestic front, he is focused on government policies and regulations which pose as obstacles to business, including high taxes. His policies are to generally move towards a more deregulatory environment and remove certain rules which are considered impediments to business, according to his campaign. He is also expected to overhaul the tax system with motives to both simplify the system and overall reduce taxes. This is a positive development for business and for securities (both Debt and Equity) issued by companies. This is also a leading explanation for why the stock markets in the US have been cynically rising since November 8^th when Trump’s victory was confirmed.

On the external front, the general economic policy stance has been nationalistic and protectionist. The new administration had advocated a lot of such policies during the campaign. These included promising action against countries such as Japan and China (and later Germany), which were accused of being currency manipulators and were allegedly using a deliberately low value of the currency to boost their exports. Trump promised higher tariffs and taxes against countries and companies which are found to be offending on these matters.

The President believes the only way the US can drive inward investments is by discouraging importers with higher tariffs, in an effort to tip the scales which are currently in favour of countries such as China. These comments also reflect the President’s aversion towards the cheap Chinese goods and services which are flooding the US consumer market, and largely undercutting US businesses – something he promised to tackle as part of his election manifesto.

It is no secret that the US is facing a trade deficit, but any protectionist measures could easily backfire and could initiate retaliatory actions against the US, especially from China. It would also adversely affect the US, sending its currency spiralling down, push up inflation and potentially destabilise global markets. This will also discourage foreign investors from investing in US assets which would be quite against US’s interests.

If Trump goes ahead with his electoral promises of creating infrastructure and investment boost, it should boost investor confidence; push the US treasury bonds and likely the dollar upwards, something he seems to be less wary of, especially since the currency value is too high for international comfort, while others such as the Yuan seem overvalued. These comments sparked concerns that the new President may engage against the long-standing US policies. To tackle trade deficit, he needs a weaker dollar; and if he can put flesh to the bones on his promised economic policies, he is going to make the dollar stronger. It’s a forked road, and if he will choose the path less trodden is a question yet to be addressed. Then again, for Trump, it’s always been the path less trodden which brought him to the White House in the first place.

For countries like Mexico and some others, he has threatened strict controls on immigration, and the movement of capital from the US into these countries. For example, he has criticised US companies which make investments in Mexico, which has already led to companies reconsidering strategy and reassessing their yearly business plans.

As for the emerging markets, they may be enticed to look beyond the USA for investments under the current climate. China and Japan suffer from severe overcapacity where in existing investments are not generating sufficient returns. A trade war is not exactly the best of international developments that would make one invest in China. The uncertainty created by the Trump-machine has generated poor visibility and until this lifts off, it is hard to assess the way of flows. The trade policy outlook of Mr Trump is definitely a risk factor and in addition to the hawkish Federal Reserve and commodity prices, could be perilous for emerging market investments. However, it should be noted that investors are always seeking performance, even though non-economic drivers appear to be leading – at the end of the day the performance is what truly matters. Looking at emerging markets we can say that India, Brazil, Indonesia are stabilizing, growth-focused economies – this is a narrative investors can buy into.

It is also possible that Emerging Markets such as South Asia or Africa may benefit from investment inflows. Similarly, Russia and Iran may also see inflows but only if issues relating to sanctions are resolved. Nevertheless, the political actions such as travel bans and free movement restrictions will also tend to have some impact on the business front. Companies which face the brunt may lobby or protest to make amends. So far, the optimism in emerging markets has been immense, lest any of Trump’s emerging market-unfriendly campaign proposals make it onto the policy agenda, emerging markets would certainly suffer.

It remains to be seen how much of the protectionist and anti-mercantilist campaign promises will be translated into real policies. So far, the new President’s stance towards China and Japan has been more conciliatory than the campaign rhetoric might have led one to expect. In the case of Japan, Prime Minister Abe is reported to have emphasised the number of Japanese companies which have created manufacturing jobs in the USA. This could be the rationale for Trump’s policy – threaten countries and companies unless they can show a track record of investing and manufacturing in the USA. It can also be effective as Ford has boosted its manufacturing investment in the USA and moved against expanding in Mexico.

There is definitely some hard work ahead.

With Donald Trump's inauguration, a new, contradictory era of the USD may have begun, points out Innovative Securities' analysis. They remind: in the past decades, presidents refrained from making clear statements about the USD but the new Administration seems to be different and that can lead to a new situation.

Trump and his colleagues expressed concerns about the strength of the dollar or complained about other currencies being undervalued, underlines the analysis, adding: they mentioned the euro, the Japanese yen, the Chinese yuan as well as the Mexican peso. The choice of these countries is not surprising: the US has a trade deficit against them.

According to Trump, these countries devaluate their currencies to be more competitive, and the US must take steps to change the situation, reminds Innovative Securities, mentioning that an OECD survey also points out that the euro is nearly 25% undervalued, the yen is 11% undervalued, while the Mexican peso is undervalued by 147%. Since Trump's inauguration though, peso is constantly strengthening.

But the USD is not only strong because of its trading partners, believes Innovative Securities. The US is still one of the most beneficiary players of globalization and we can see that since 2010 the USD strengthened constantly while trade deficits remained the same or grew. The US also has a huge import demand for its domestic consumption totalling up to 70% of its GDP. Trump's unofficially announced domestic tax cuts, deregulation and infrastructure investments can further strengthen the dollar. Even the desired stronger US economy, different monetary policy and the rising bond yields are favouring the greenback, they add.

The markets recognize the conflicts between the facts (that helps the dollar) and the words (the comments that are negative for the USD), and actions are needed for clearing the picture, says the analysis, adding: in the upcoming months markets will concentrate on the loosened fiscal policy and the evolving inflation which may lead to a lot of bullish mix that supports the dollar in the near future. In the middle term, though, the company expects a turnaround. The contradictions may stay for long, summarizes Innovative Securities, saying: a more volatile market environment may come, where old policies are eliminated while the Trump Administration continuously tries to make verbal interventions in favour of their policies.

(Source: Innovative Securities Web)

Deloitte's Tax Policy Leader Jon Traub, principal, Deloitte Tax LLP, offered the following statement in response to the tax reform outlook provided during President Trump's address to Congress on February 28^th 2017:

"It's an exciting yet uncertain time for tax reform, with prospects rising for Congressional action and talks of revenue raisers to pay for it swirling around the Capitol and in corporate boardrooms. What is certain is that difficult choices face Congress if they intend to enact tax reform this year. We are in the very early stages of a very long game, so twists and turns are more likely than not.

"There is much uncertainty in all of this, but it is possible we will emerge from the debate with an entirely new way of taxing businesses in the US Companies are rightly eager to understand the potential impact of these proposals on their tax burden and supply chains. To be prepared in this uncertain tax environment, companies can consider situational modeling that weigh proposals against one another, scenario plan, and create customized alternatives in order to analyze the effects of various tax reform proposals."

(Source: Deloitte Tax LLP)

President Donald Trump's proposed policies will have significant implications for a range of industries and, indeed, the entire global economy. While many of his proposed policies on trade, the environment and healthcare may take time to implement, infrastructure and defense spending will give a short-term boost to the US economy. If distributed widely, thus supporting both public and private projects, increased expenditures will create opportunities for smart and secure technology upgrades in both infrastructure and defense, paving the way for the next generation of travel, transport, broadband and utility delivery. However, there is a lack of clarity regarding the ways in which spending, coupled with tax cuts, will impact mid-term economic growth, especially if Trump's proposed trade reforms lead to economic contraction.

Trump's Impact on Future Business in the United States is part of Frost & Sullivan's Visionary Innovation (Mega Trends) Growth Partnership Subscription. Frost & Sullivan has also created the New Populism Pendulum Custom Workshops. These are one-day consulting engagements with our industry experts and strategists.

"Self-determination will play an increasingly important role in American culture over the next four years, with citizens, businesses, cities and states adjusting to the redirection of responsibilities away from the federal government," said Frost & Sullivan Visionary Innovation Senior Consultant Jillian Walker. "Decisions regarding income, investment and funding will become even more specific, personalized, and consequential, and there will be a greater need for consumer guidance."

There will also be keener focus on automation technologies in manufacturing, with manufacturers finding a balance between controlling costs and expanding American operations. The sectors that will gain the most from proposed deregulation include energy and financial services. "In terms of consumers, we expect connected delivery models for education, healthcare and financial services to accelerate, meeting greater consumer demand for a wider range of convenient, affordable, and on-demand alternatives," noted Walker.

Trade, especially, is under a cloud of uncertainty, causing businesses to reassess their supply chains and long-term investment strategies. Companies are also adapting to Trump's use of social media, and they will increasingly deploy proactive strategies emphasizing their commitment to America.

"In terms of foreign policy, Trump has begun his administration with a much friendlier attitude toward Russia, and there is a strong possibility that the US will lift its sanctions on the country," noted Walker. "US relations with both Mexico and China will be strained in the first few months of Trump's presidency. It is evident that Mexico will be hit the worst, as American manufacturers are already reconsidering expanding capital investments in the country."

Overall, Trump's economic plan, his approach to trade, and his realignment with global powers could stimulate a short-term boom, but they could also lead to economic contraction over the mid-term if planned approaches do not yield anticipated results.

(Source: Frost & Sullivan)

Countering the narrative that slow economic growth is "the new normal" for America's economy, the Pacific Research Institute today released the first in a series of reports from its new study, Beyond the New Normal, which makes the case that future U.S. economic growth can meet -or exceed - past growth trends if the right economic policies are adopted.

"America's economy has been stuck in neutral for so long that some economists claim that low growth rates are now the new normal," said Dr. Wayne Winegarden, PRI Senior Fellow in Business and Economics, and co-author of Beyond the New Normal.

"History has shown that when free-market policies are embraced, America's economic engine roars. President Trump and Congress should adopt these policies that have proven successful in growing the economy and lifting more people out of poverty."

Part 1 of Beyond the New Normal provides an overview of the case Winegarden and co-author Niles Chura will present arguing that free-market policies are needed to stimulate long-term, strong economic growth in the US.

Among the key points in Part 1 of their study:

• Average family income and average household income stagnated during much of the 1970s, and since 1999. Average annual real GDP growth has averaged just 1.89 percent since 2001.

• During times of slow economic growth, other negative trends, including slower average household income growth, greater income inequality, and increased poverty, have followed. These negative trends were reversed when the economy grew at a more rapid pace.

• Strong economic growth occurs when there is a pro-growth policy environment in place that:

1. Empowers the private sector to efficiently employ capital, labor, and technology;
2. Discourages value destroying rent-seeking behavior; and
3. Provides core public goods as efficiently as possible.

"Status quo thinking is holding back robust economic growth and keeping more Americans stuck in poverty," said PRI President Sally Pipes. "In this and subsequent volumes, Wayne and Niles make the compelling case that the President and Congress must instead embrace proven, free-market policies if we are to return America to the days of strong and sustained economic growth."

Dr. Wayne Winegarden is a Senior Fellow in Business and Economics at Pacific Research Institute. He is also the Principal of Capitol Economic Advisors and a Contributing Editor for EconoSTATS. Niles Chura is the founder of Ouray Capital.

(Source: Pacific Research Institute)

Winans Investments has created a history book, ‘Investment Atlas II’, which examines all US presidents since 1849 and how stocks, bonds and housing performed during their terms.

Their research has found compelling comparisons to past presidential elections. In the wake of Trump's victory, the media is focusing on parallels with "Give 'em Hell" Harry Truman's surprise 1948 victory over Thomas Dewey, or the "Hanging Chad" mess of 2000 that required the US Supreme Court to rule in favor of George W. Bush.

However, investors should focus on the Carter-Reagan transition of 1980-81 in which the 9% post-election stock market rally ushered in one of the greatest investment booms in US history!

While today's economic picture is not identical to the 1980's (especially when it comes to the level of interest rates and inflation), there are Reagan/Trump positive similarities that investors need to know:

Lower Business Taxes- Since 1913, US corporate income taxes have ranged between 1% - 53% with the current tax rate at 36%. The Trump plan to reduce business income taxes to 15% would be the largest tax cut for corporate America ever! Bottom-line: lower business taxes suddenly makes US stocks attractively valued versus other global investments.

Reduced Regulations - The regulatory pendulum is swinging away from post-Great Recession punishment towards deregulation in order to spur economic growth. This has caused a large shift in stock market leadership towards financial services, manufacturing and energy shares.

Lower Investor Taxes - In addition to a proposed reduction in individual top tax rates from 40% to 30%, investment related taxes (capital gains, dividends, etc.) are likely going to be substantially reduced. The Trump plan also calls for phasing out the Obamacare investment tax and lowering tax rates for short-term capital gains.

Stronger US Dollar - As economic growth expands, a country's currency should increase in value. Similar to the US dollar's historic rally in 1985, demand for foreign purchases of US stock, bond and real estate investments should boom!

There are other positive economic developments to also consider:

Gradual Interest Rate Increases - It appears that the Federal Reserve will not make the mistakes it made in the late 1930's when it mishandled exiting its Depression Era "0% interest rate" policy and triggered the Roosevelt Recession. Today, inflation pressures are relatively low, and the process of raising the Fed Fund's Rate ¼ point at a time will gradually return the US to a normalized interest rate environment while economic growth accelerates in a healthy manner.

Republican Controlled Congress - Unlike Reagan, who faced challenges from a Democrat controlled Congress through his entire presidency, Trump should have a faster & easier time enacting much of his pro-business agenda over the next two years.

Lots of Fuel For an Extended Bull Market - Since 2008, many investors have kept large amounts of cash in money market accounts and CDs. As the economy expands over the next few years, much of this money could be invested in US stocks. There could also be an investment shift from low yielding municipal and treasury bonds into US equities.

With the Trump administration's ambitious economic agenda, US common stocks should greatly outperform income investments and could achieve annual returns not seen since 1990's average annual returns of 19%!

What Should Investors do?

Investors that do not need investment income and have an average tolerance to financial risk should consider reallocating their portfolios into more US common stocks.

However, any reallocation into more stocks is not without risk. Historically, US common stocks have negative years 27% of the time and serious bear markets 8% of the time (like the 50% corrections suffered in the Dotcom Bust of 2000-02 and 2008-09's Great Recession). Simply put, any decision to increase exposure into more stocks must include a disciplined plan to exit the stock market when key market indicators turn negative in the future.

(Source: Winans Investments)

The updated lodging forecast released  by PwC US notes that strong industry performance in the fourth quarter of 2016, including encouraging trends in demand and average daily rate (ADR), coupled with a post-election surge in consumer and business sentiment that contributed to improving economic conditions, sets the stage for continued revenue per available room (RevPAR) growth in 2017.

PwC expects the increase in supply of hotel rooms to marginally outpace growth in demand, resulting in a decline in occupancy to 65.3%. Aided by an expected increase in corporate transient demand, growth in average daily rate is expected to drive a RevPAR increase of 2.3%, according to the report.

PwC's outlook is based on an economic forecast from IHS Markit, which expects real GDP to increase 2.3 percent in 2017, measured on a fourth-quarter-over-fourth-quarter basis, approximately 50 basis points higher than in PwC's November forecast. Improving economic conditions are driven by a number of factors, including improving business and consumer confidence, and surging financial markets, as well as potential policy decisions related to tax cuts and changes to trade regulations.

The updated estimates from PwC are based on a quarterly econometric analysis of the US lodging sector, using an updated forecast released by IHS Markit and historical statistics supplied by STR and other data providers.

"Based on a strong fourth quarter, we are encouraged by the trends we are seeing as we head into 2017," said Scott D. Berman, principal and U.S. industry leader, hospitality & leisure, PwC. "However, we remain cautiously optimistic, as higher-than-previously anticipated increase in demand is still expected to be offset by increasing supply through the year."

(Source: PwC US)

National Write Your Congressman (NWYC) has found small business owners voicing high levels of optimism for the incoming administration's plans for the US economy and their own business prospects in its Q4 2016 Index. NWYC, an organization that gives small businesses a voice in American government, issued its Quarterly Index measuring small business owners and operators' sentiment towards Congress and their confidence in the US government.

The Q4 2016 Index found its membership of small business owners expect the most direct and positive impact on their 2017 business results from five specific components of President Trump's first 100 days agenda: tax reduction, health care reform, regulation relief, elimination of corruption and energy production.

The renewed sense of optimism is based on small business owners' opinions that the overall business climate, long-term success of their business and revenue growth will improve as new the administration takes power.

"Every day, NWYC listens to small business owners across the country and this quarter's Index shows what we hear in the field -- that owners are encouraged by President Trump's first 100 days agenda and have a specific mandate for their members of Congress," said Randy Ford president of National Write Your Congressman. "The uptick in our members' confidence in the fourth quarter of 2016 is encouraging as we work to make their voices heard to Congress."

NWYC's poll represents the opinions of more than 1,000 NWYC members across 46 states in the construction, services, manufacturing and agriculture industries.

"As the engine driving the US economy, small business owners are revved up for a powerful first quarter and NWYC will be working alongside our membership of construction workers, farmers, machinists and financial service providers to make sure their voices and opinions are heard by Congress," said Ford.

(Source: NWYC)

While the outlook is for firmer and more geographically balanced growth in 2017, the Canadian economy faces major downside risks from the incoming Trump administration's trade policies and Republican-backed corporate tax reforms, finds a new report by CIBC Capital Markets.

These risks will impede the Bank of Canada's ability to tighten monetary policy, the report says.

"We would need a huge and unlikely upside surprise to push the Bank of Canada into a rate hike this year," says Avery Shenfeld, Chief Economist, CIBC. "Particularly since, the Trump administration's trade-policy-by-Twitter and a Republican-backed corporate tax reform plan biased against import content both represent a major downside risk if Canada gets caught in the crossfire."

In that more negative scenario, Mr. Shenfeld expects the Canadian dollar to come under pressure. "The shock to US-bound exports would engender a much steeper slide in the Canadian dollar, well beyond 1.39 Canadian dollars per US dollar we expect to see on monetary policy differentials," he says.

CIBC forecasts Canada's real GDP growth at 1.8 % in 2017 and 2.0 % in 2018. "A modest rebound in energy sector capital spending and ongoing oil output gains will add a full percentage point to growth, a lot of that showing up in Alberta's climb out of recession," says Mr. Shenfeld.

The growth in the energy sector will offset the reduced contribution from housing and consumption as an indebted household sector faces higher inflation and a tighter in mortgage borrowing conditions, the report says.

As for equity markets, Canadian stocks are unlikely to have the same edge relative to U.S. stocks as they did in 2016. "It's not what you know, but what you can't know at this juncture, that gives food for thought for investment strategies," says Mr. Shenfeld. "But, this could still be a wild ride for investors. There are some significant skews to the risks around the bland base case."

Energy and gold prices look to be range-bound, with the former constrained by inventories and rebounding US drilling, while industrial metals lack the sustained demand needed to build on the prior year's gains."

US stocks have already priced in a lot of good news, mostly on the cost side, and Mr. Shenfeld says that if Trump delivers on lower corporate taxes and a lighter regulatory burden, high-single digit earnings growth looks achievable.

The report forecasts 2.3% growth for the US economy in 2017 and 2.1% in 2018, noting that uncertainty is "extremely high" surrounding Trump policies.

"Trump enters the Oval Office with a promise to Make America Great Again, but the trouble is that America is pretty good already," Mr. Shenfeld says. "We've lifted our US growth forecast slightly for 2017, reflecting economic momentum already in place more than any new policy developments. Wage and jobless data suggest that slack is diminishing, with the US on target for full employment by next year.

"We're also not sure that large scale fiscal stimulus is really on the way, at least not on a sustained basis. Tea Party conservatives are likely to insist on spending cuts to "pay" for tax reductions, and the infrastructure plan is extremely modest in scale."

If such offsets aren't forthcoming, the result won't be faster growth, but simply a steeper climb in Fed hikes to keep inflation at bay, the report says. A situation with a greater fiscal ease in the US, would prompt increases in borrowing requirements, inflation and Fed hikes that will lift bond yields at a sharper pace.

"For corporate Canada, the instinct would be to judge a becalmed outlook as reason to eschew active hedging for now. But the potential for a Trump in the night bump suggests looking for opportunities to hedge against a pullback in commodities, a weaker Canadian dollar, and a rise in long term rates," Mr. Shenfeld says.

(Source: CIBC)

As the new US President settles in, Zillow finds the value of the White House has appreciated 15% since Barack Obama's inauguration in 2009.

The White House, valued at $397.9 million has appreciated 15% since the Obamas moved in eight years ago. The White House is the most valuable home on Zillow’s valuation list.

President-elect Donald Trump will be the 44th President to move into the 55,000 square-foot home(ii). Unlike some past presidents, luxury living is not new to Trump, who is moving from his three-story penthouse in The Trump Tower to one of the most famous homes in America.

The value of the White House, currently at its peak, is expected to appreciate 3 percent over the next year, in line with home value growth expected throughout Washington, D.C. Home values across the country have appreciated 6.5 percent over the past year and 9 percent since Barack Obama's inauguration in 2009.

"President-elect Trump is moving into one of the most famous homes in the country -- and, according to Zillow, it's also the most valuable home in the country," said Zillow Chief Marketing Officer Jeremy Wacksman. "President Obama's term coincided with a massive recovery of the US housing market, and that's reflected in the updated value of the White House. Home values across the country are growing at their fastest pace since 2006, with many markets setting new records -- one of the reasons why the White House is worth more now than it has ever been."

The White House has 132 rooms, 32 bathrooms and sits on 18 acres. Notable features include basketball and tennis courts, a sun room and a library, all of which influence the home's Zestimate. Were a potential buyer to take out a standard 30-year fixed mortgage on the White House today, the monthly payment would be about $1.6 million(iii), according to Zillow. The monthly rental payment would be just over $2 million per month.

(Source: Zillow)