Trump’s stock market obsession
Why ‘Tariff Man’ Isn’t Happy with Market Reaction to Trade Truce how Trump is excessively focused on stock markets. According to a report in theWall Street Journal,“Several people close to the president say he places as much importance on the health of the Dow Jones Industrial Average for validation of his job performance as he does with his polling numbers.”
He is, therefore, currently restless given the relentless fall in the stock markets, especially since the beginning of December. The S&P 500 (SPY), the Dow Jones Industrial Average Index (DIA), and the NASDAQ Composite (QQQ) have fallen 10%, 9.5%, and 9.6%, respectively, in December (up to December 27).
Advice from a top investor
In keeping with his obsession for stock markets, a Trump administration’s official has asked for advice from a notable investor on stock markets, as per a report from CNBC. According to CNBC sources, the call took place after the sell-off on Christmas Eve. The markets have already been reeling under the pressures of slowing economic growth, earnings deceleration, trade war uncertainty, and tightening monetary policy. The added uncertainty from Trump’s comments criticizing the Fed chairman—and reports of his contemplating firing the chair—rattled the markets.
The investor’s advice to Trump
The investor reportedly told the official “to tell the president to end his criticism of Powell on Twitter, stop administration turnover and reach a trade deal with China in order to help markets.”
As per previous reports from theWall Street Journal, Trump, however, remains convinced that the volatility (VIX) in the markets (VTI) isn’t because of him but because of the Fed and its aggressive rate hike stance.