If President Trump wins a seconds term, it could prolong the bull market and delay a recession. Optimists believe that pro-business policies would resonate with Wall Street for another four years. Since Trump won the presidency the Dow and S&P 500 have rallied 44% and 35% respectively.
It is interesting to see how people can change their minds on a daily basis. Trump has had a great stock market run while he has been president but it is hardly from the policies he has enacted. The market thinks something one day and immediately changes the next day to something to total opposite. One day Trump has no idea what he is doing and the next, if he get reelected there will not be a recession in the United States. The market seems to like what Trump has been doing for stocks and recently there has been revitalized. It seems ridiculous to say that if he gets reelected the United States can skip a recession.
https://www.cnbc.com/2019/04/16/trump-reelection-would-boost-stocks-delay-recession-robert-shiller.html
3 comments:
So far the growth has been positive and to be honest he can't receive all the credit for the positivity the economy has been having. This article doesn't really give much information on how things might be in the future, but just vague speculations. However what I think the States should focus on right now is resolving debts and stability than constant growth. Growth is of course, good, but if investments of firms keep accumulating debts they cannot pay, there may be occurrences of bankruptcies.
I do not like how President Trump takes credit for the success of the stock market. There are many forces that play into the stock market, and like you said, most of it is not correlated to policies implemented by the Trump administration. I do find it humorous that Tweets from Trump have led to minor swings in the stock market. Obviously as the election nears, he needs to be his biggest fan. It will be interesting to see how long this unprecedented growth can continue.
I agree with you Kyul. I think that the United States has needed to work on its problems in house by resolving debts and getting the deficit down more. The United States is already overextend and its hard to believe that the debt can continue to get higher. Eventually something has to burst and once it does, the United States has no back up plan. And going to Drew's comment, there is no way that the President should be able to manipulate the stock market so much with a tweet. There has to be sanctions or penalties by regulatory agencies for allowing the President to have so much sway over the markets with a simple tweet. And yes, he needs a strong social media following if he is going to run / win a second term.
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