Just about everyone with money in the stock market has been wondering whether the record bull market run we’ve seen over the past decade is finally coming to a close.
And the president is no different.
Donald Trump weighed in on the stock market upheaval that has seen the three major indexes, the S&P 500, Dow Jones Industrial Average and the Nasdaq, lose between 7 and 10 percent or more of their value at times this month, which has been the single-worst month for stocks since 2008 during the Great Recession.
October has been so bad, it’s wiped out all of the gains made over the past eight or so months since February’s big selloff.
President Trump has used the market upheaval as a motivator for voters. He says if you want to see the market continue to go down, vote Democrat.
“The Stock Market is up massively since the Election, but is now taking a little pause – people want to see what happens with the Midterms. If you want your Stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, High Taxes & Open Borders!” Trump tweeted on Tuesday.
The Federal Reserve’s rising interest rate have often been the focal point regarding the president’s ire, saying “the Fed has gone crazy” and calling the central bank “my biggest threat.”
He has somewhat toned down the Fed-bashing rhetoric of late, but he did tweet a comment from a Wells Fargo strategist on Tuesday, blaming the Fed for the stock market woes.
“If the Fed backs off and starts talking a little more Dovish, I think we’re going to be right back to our 2,800 to 2,900 target range that we’ve had for the S&P 500.” Scott Wren, Wells Fargo.”
The president also noted a consumer confidence report that says it reached its highest level in nearly two decades.
Per Wall Street Journal:
“While market participants seem to be extremely eager to call for a recession, consumers have a brighter view of the landscape,” Stephen Stanley, chief economist at Amherst Pierpont Securities, said in a note to clients.
The president then noted the stock market’s rebound on Tuesday, signalling good things could be in store due to strong quarterly company earnings reports.
“Stock Market up more than 400 points yesterday. Today looks to be another good one. Companies earnings are great!” Trump tweeted Wednesday.
The Stock Market is up massively since the Election, but is now taking a little pause – people want to see what happens with the Midterms. If you want your Stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, High Taxes & Open Borders!
— Donald J. Trump (@realDonaldTrump) October 30, 2018
“If the Fed backs off and starts talking a little more Dovish, I think we’re going to be right back to our 2,800 to 2,900 target range that we’ve had for the S&P 500.” Scott Wren, Wells Fargo.
— Donald J. Trump (@realDonaldTrump) October 30, 2018
Stock Market up more than 400 points yesterday. Today looks to be another good one. Companies earnings are great!
— Donald J. Trump (@realDonaldTrump) October 31, 2018
Editor’s note: Do you share the president’s optimism regarding the market? Are things about to turn around or is October a harbinger of bad days ahead on Wall Street?