Mkt falls: Trump’s take, Trump’s role

In Uncategorized on 11/02/2018 at 10:50 am

Trump tweeted last Wednesday, “In the ‘old days,’ when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good (great) news about the economy!”

More seriously, NYT’s Dealbook writes

 The political question: What does this mean for President Trump, who has touted stock market gains as a measure of his success?

More from Ben White of Politico:

“This is a risk that the president clearly set himself up for,” said Charles Gabriel of Capital Alpha Partners, a Washington research firm. “Until now, Trump’s had kind of a free ride in this market and taken so much credit for it, even though so much of it was due to easy-money policies from Janet Yellen and the Fed. Now she’s out the door and volatility is back.”

There’s another way of thinking about Mr. Trump’s role, Andrew writes in his latest column:

Investors believe his policies to stoke growth are going to work so well that they will overheat the economy, and force the Federal Reserve to try to slow things down.

  1. before the 2007 crash, a pundit was on cnbc talking about some data about to be released – if the news is good, shares will rise; if bad, bernanke will cut interest rate so shares will also rise …

    I remember a more useful piece of advice from some great investor many years ago: when everyone is optimistic, sell; the price must be too high already

  2. Rumours of Yellen switching off the PPT’s computers on her way out of the Fed building. Hohoho!!!

    Some of the estab also decided to hang the markets out to dry as a message to Donald.

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