From January 2017 through December 2019, U.S. equities enjoyed one of the most remarkable stretches in modern history. Fueled by corporate tax reform, pro-business policies, and a backdrop of low inflation with supportive monetary conditions, the “Trump bull market” drove strong, broad-based gains across large, mid, and small-cap stocks.

While volatility always reminds investors of cyclical risks, the period as a whole produced outstanding total returns across every major benchmark. This article is to provide ideas for investors with the hope that there will be a repeat of the variables in the 36 month timeframe of 2017-19.

Three-Year Total Returns by Major Index (Jan 2017 – Dec 2019)

• S&P 500 (large-cap): +53%
• Dow Jones Industrial Average: +49%
• Nasdaq Composite: +80% (top performer among headline benchmarks)
• Russell 2000 (small-cap): +27%
• S&P MidCap 400: +27%
• S&P SmallCap 600: +27%

Other Notable Overperformers

• Russell 1000 Growth: +70% – benefited from the dominance of large-cap growth, especially tech and consumer discretionary leaders.
• Russell MidCap Growth: +54% – outperformed both the S&P MidCap 400 and Russell 2000, showing the strength of mid-cap growth stories during the bull market.

Key takeaway: While broad indexes gained solidly, growth-focused benchmarks—particularly those tilted toward technology and innovative companies—outpaced value and small-cap peers.

Sector Performance (S&P 500, Total Returns, 2017–2019 Combined)

• Information Technology: +103% – clear leader, driven by cloud, mobile, and semiconductors.
• Communication Services: +18% – mixed, as legacy media lagged but digital platforms thrived.
• Financials: +37% – supported by rising rates early, volatility in 2018, recovery in 2019.
• Industrials: +35% – global trade turbulence capped upside, but strength in 2019 helped.
• Consumer Discretionary: +58% – led by e-commerce and consumer services.
• Health Care: +56% – resilient through the cycle even prior to COVID, aided by biotech and managed care.
• Materials: +33% – cyclical exposure kept returns moderate.
• Real Estate: +40% – benefited from lower rates in 2019 after a challenging 2018.
• Utilities: +46% – steady compounding plus flight-to-safety in volatile periods.
• Energy: –9% – only negative sector, struggling with oil price volatility and oversupply. However, with AI needs today, the landscape has changed.

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Conclusion: Policy, Market Breadth, and Future Outlook

The 2017–2019 bull market showcased the breadth and resilience of U.S. equities. While large-cap tech dominated , gains also extended to mid- and small-caps, reflecting a healthy market structure .

Several policy drivers underpinned this advance:

• The Tax Cuts and Jobs Act (2017) boosted corporate earnings by slashing the statutory corporate tax rate from 35% to 21%.
• Deregulation initiatives in finance and energy provided a friendlier environment for capital investment.
• A shift from Fed tightening in 2018 to rate cuts in 2019 restored liquidity and investor confidence.
• An unprecedented time of peace and lack of notable wars.

Together, these forces produced a powerful bull market across indexes and sectors, demonstrating how fiscal and regulatory choices can stimulate both growth leadership in technology and broad participation across the market .

Forward-Looking Perspective (2025 and Beyond)

Looking ahead, the market backdrop could be poised for a new phase of expansion:

• World peace initiatives (6–12 agreements under Trump in 2025) are expected to reduce global tensions, creating a more stable environment for investment and trade.
• Lower energy costs support both consumers and industrial sectors, easing inflationary pressures.
• Tariff reductions by 47 nations enhance global trade flows and improve profit margins for multinational firms.
• Lower interest rates restore liquidity, encouraging both capital investment and equity valuations.
• International equities, depressed by the lingering effects of the Ukraine War, remain undervalued relative to U.S. peers—positioning them as potential leaders in the next stage of the cycle.
• World Demand – With 8 Billion people, The world population is increasing by roughly 70-90 million people per year and demand from Arabia, South Asia, India, and Africa continues to increase every day.

In sum, just as pro-growth policies fueled the 2017–2019 bull run, today’s mix of peace initiatives, lower tariffs, easing monetary policy, lower debt burdens, and more favorable global conditions suggests that both U.S. and international equities could be on the cusp of another powerful expansionary cycle .

Citations

1. Slickcharts. S&P 500 Annual Total Returns 1926–Present. Available at: https://www.slickcharts.com/sp500/returns/details
2. Macrotrends LLC. S&P 500 Historical Annual Returns. Available at: https://www.macrotrends.net/2526/sp-500-historical-annual-returns
3. Bankrate. A history of the Federal Reserve’s interest rate changes. Available at: https://www.bankrate.com/banking/federal-reserve/history-of-federal-funds-rate/
4. FedPrimerate.com. Federal Funds Rate History. Available at: https://www.fedprimerate.com/fedfundsrate/federal_funds_rate_history.htm
5. International Monetary Fund. The Long-lasting Economic Shock of War. IMF Finance & Development, March 2022. Available at: https://www.imf.org/en/Publications/fandd/issues/2022/03/the-long-lasting-economic-shock-of-war
6. White House (2025). President Trump Brokers Another Historic Peace Deal. Available at: https://www.whitehouse.gov/articles/2025/08/president-trump-brokers-another-historic-peace-deal/
7. Associated Press. Armenia, Azerbaijan sign peace deal at White House with Trump as host. Available at: https://apnews.com/article/donald-trump-white-house-armenia-azerbaijan-069379e9c4a058c96af38afbf4684829
8. Newsmax (George Mentz). Trump’s Global Economic Breakthrough. Newsmax Finance, August 25, 2025. Available at: https://www.newsmax.com/finance/georgementz/trump-global-economy/2025/08/25/id/1223840/
9. Cato Institute (Susan Dudley). Deregulation Under Trump. Regulation, Summer 2020. Available at: https://www.cato.org/regulation/summer-2020/deregulation-under-trump

Additional References (Trump Tax Cuts → GDP/Economic Impact)

11. U.S. House Ways and Means Committee. Extending Trump’s Tax Cuts Would Boost Jobs, Wages, and Economic Growth . April 21, 2025. Projects a short-run real GDP boost of 3.3–3.8%, and a long-run increase of 2.6–3.2%. Available at: https://waysandmeans.house.gov/2025/04/21/study-extending-trump-tax-cuts-would-boost-jobs-wages-and-economic-growth/
12. Tax Policy Center. How Might the Tax Cuts and Jobs Act Affect Economic Output? Shows GDP growth rising from 2.4% in 2017 to 2.9% in 2018, likely due largely to the tax cuts, then moderating to 2.3% in 2019. Available at: https://taxpolicycenter.org/briefing-book/how-might-tax-cuts-and-jobs-act-affect-economic-output
    
     

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Commissioner George Mentz JD MBA CILS CWM® holds a Doctor of Jurisprudence (JD), and an MBA from ABA and AACSB Accredited programs. Mentz is the first in the USA to rank as a Top 50 Influencer & Thought Leader in: Management, PM, HR, FinTech, EdTech, Wealth Management, and B2B according to Onalytica.com and Thinkers360.com. George Mentz JD MBA CILS is a CWM Chartered Wealth Manager ®, global speaker - educator, tax-economist, international lawyer and CEO of the GAFM Global Academy of Finance & Management ®. The GAFM is a EU accredited graduate body that trains and certifies professionals in 150+ nations under standards of the: US Dept of Education, ACBSP, ISO 21001, ISO 991, ISO 29993, QAHE, ECLBS, and ISO 29990 standards. Mentz is also an award-winning author and award winning graduate law professor of wealth management of one of the top 25 ranked law schools in the USA and is founder of the ChE Chartered Economist ® certification & education programs. George Mentz has served as a White House Commissioner, and has served the Civil Service Commission for Police and Fire and the Airport Commission (Home of Space Force). Comm'r Mentz is one of the few lawyers who has ever earned Wall Street Firm licenses of Series 7,63, and 65 , served as a Judge for the ABA, has led civil litigation cases in fraud and defamation, as well as testified as an expert in FINRA/NASD financial arbitration.