In the nineteenth century, a period characterized by rapid economic growth and development, the United States experienced many more years of trade deficits than surpluses. The promising US economy typically attracted "investment surpluses" from around the world. Since World War II, the US has run trade surpluses about half of the time. On average, US stocks perform better during trade deficit years (15.3%) than in trade surplus years (13.3%), and performed best in years just prior to rising trade deficits (17.8%). Industrial production growth and employment are stronger during trade deficit (i.e., "investment surplus") years. Contrary to popular opinion (including those of the vast majority of economists and politicians) rising trade deficits represent the best possible trade condition for markets.