Dow closes above 20K - Trump takes credit - Left cries foul.

Who knows if he really deserves it, but it's an unwritten rule that the President takes credit--and blame--for everything that happens under their watch.
 
I find it annoying when politicians try to take credit for things like that, but also when they are blamed for it.

What did he do that affected the fundamentals of the economic system? I can see short dips and fluctuations occurring based on something a president does (based mostly on PR) but it would return to norm since it's based on speculating/betting/reacting.
 
Him presumably being happy about it and saying "Great!" = taking credit? Or did he make other statements?
 
I find it annoying when politicians try to take credit for things like that, but also when they are blamed for it.

What did he do that affected the fundamentals of the economic system? I can see short dips and fluctuations occurring based on something a president does (based mostly on PR) but it would return to norm since it's based on speculating/betting/reacting.
Well, in all fairness, he didn't take credit for it.

He just said, "great!"

@Blood Python beat me to it
 
Who knows if he really deserves it, but it's an unwritten rule that the President takes credit--and blame--for everything that happens under their watch.

Obama would have gotten the credit.
 
Since he hasn't done anything yet that affects it I wouldn't draw much conclusions on that just yet. Much of the economic criticism towards Trump that I've seen from various sources has been that Trump has policies with short term benefits rather than sustainable ones, so that goes even more to the stance of wait and see what he does.

Just as I think the Trump followers that praise him to the heavens while he hasn't done anything yet are people that are detrimental to society, as worshiping an idol has no value and the rational person instead gives praise when a politician lives up to his talk, he can't be written off either until he's made mistakes. I'll judge his impact on the US economy in a few years.
 
Well seeing as the Dow Jones at it's lowest point after the crash was around 6800 in March 2009, and is now over 20000 less than 9 years later, this averages about a 13% increase each year whereas GDP has scarcely grown on average 2% per year since then.

Let's see how fast Trump changes his story back when the market correction inevitably comes within the next couple years (which would actually be more true since the bubble was created in Obama's term with Quantitative Easing, and had nothing to do with Trump).
 
The recent US stock exchange jump is all based on speculation. Speculation that Trump's policies will raise publicly traded companies profit margins. The thing about speculation though, is it can quickly drop when earnings reports and economic reports show that the speculation is wrong, thus bringing a correction. If he's willing to take credit, he should also be willing to take the blame.
 
The recent US stock exchange jump is all based on speculation. Speculation that Trump's policies will raise publicly traded companies profit margins. The thing about speculation though, is it can quickly drop when earnings reports and economic reports show that the speculation is wrong, thus bringing a correction. If he's willing to take credit, he should also be willing to take the blame.
This leads me to be weary long term. It may be a good time to short some stocks while they're at all time highs.
 
The claim is that he would destroy the economy (or do massive harm) in the long run. So this idea that short term results in the market are attributable to Trump is god damn ridiculous.

Next you will give Trump credit for creating the internet, advances in medicine made decades ago and for Cubs finally winning the world series.

Seriously, the worship of this guy reminds me of cult behavior.
 
Doesn't surprise me. If you think people are investing now, just wait until that corporate tax gets slashed and foreign companies start investing in American labor. People will doubt him all the way to the finish line, and he will keep proving them wrong. It is what it is.
 
This leads me to be weary long term. It may be a good time to short some stocks while they're at all time highs.

Long term(15+ years) will be fine, IMO. There has always been a recovery after every stock market crash. Timing is the key though. If I was nearing retirement right now, Id probably move a large portion of my stock holding into bonds and treasury bills. Im not saying a crash is coming but bonds/t-bills tend to be a safer investment vs stocks and mutual funds
 
People seem to have no clue how much the market went up during Obama's 8 years in office but I'll leave that aside.

What Trump has proposed should expand the economy but there will longer term consequences. Cut enviromental regulations, cut financial regulations will grow the economy in the short term. Spend an extra trillion dollars on infrastructure will expand the economy. Strange thing to do when unemployment is at rates under 5% though. Cutting corp taxes will add to earnings. Cutting rates to repatriate dollars back to the US will bring more cash to companies and they may buy back shares or invest in new business. Should help the stock market.

The potential trade war he could start would hurt the economy.

But longer term - what will happen to the environment? Will cutting regulations lead to another 2008 type event? What will happen to the debt if the gov't increases its spending and cuts taxes. I really don't think the expansion of the economy will be enough to grow the tax base to cover it.
 
Well seeing as the Dow Jones at it's lowest point after the crash was around 6800 in March 2009, and is now over 20000 less than 9 years later, this averages about a 13% increase each year whereas GDP has scarcely grown on average 2% per year since then.

Let's see how fast Trump changes his story back when the market correction inevitably comes within the next couple years (which would actually be more true since the bubble was created in Obama's term with Quantitative Easing, and had nothing to do with Trump).

This is one of those posts that has great merit but gets no love on this forum because it doesn't conform to the preferred partisan narrative of one side or the other.
 
There are a couple issues/points with that post. I do not think there has been a bubble formed with QE.

But it does make a good point. The president gets too much credit for the gyrations of the markets and economy. The Fed was doing QE, not a president or congress.
 
There are a couple issues/points with that post. I do not think there has been a bubble formed with QE.

But it does make a good point. The president gets too much credit for the gyrations of the markets and economy. The Fed was doing QE, not a president or congress.

I think this quote below best answers how QE helps to inflate stock prices. Also, I did not say Obama was doing the QE, I said the QE was created during his administration.

"Quantitative easing keeps interest rates artificially low. This boosts investments as the interest paid on borrowing capital is less. This gives companies huge incentives to invest hence making their stock prices more attractive in anticipation of future investment and hence value addition. Another reason is that stock market investors and speculators can now borrow at low interest rates to finance their stock market trades, leading to an increase in the stock market as a whole. Finally, quantitate easing makes holding money unattractive as every additional dollar added to the economy makes your currency holding worth less. Saving in banks is also unattractive at low interest rates. This makes stock market an attractive option for many. Many risk-averse people who had not considering investing in stocks suddenly find it cheaper to borrow and invest or use their savings that are yielding very little in hope that that will strike it rich with stocks. For all these reasons, the stock market goes up when Ben Bernanke announces quantitative easing. Stock market is also an indicator of the economy, so since quantitative easing increases liquidity in the economy especially when there is a liquidity trap and thereby boosts the economy ever so slightly in the short run, this is reflected in the stock market."

https://www.quora.com/How-does-quantitative-easing-bring-about-higher-stock-prices
 
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