Will Trump’s Talk Turn the Trump Rally into Lasting Gold or End in the Trump Dump?
By David Haggith
TheGreatRecession.info
March 1, 2017
Trump is market magic. The Donald spoke, offering nothing he hasn’t said hundreds of times before in his campaign speeches, and the Dow parted its way through the 21,000 barrier without hesitation. The stock market’s rise from 20k to 21k also tied a record for the quickest 1,000-point gain. How long will this rampaging bull market last? Is 22,000 now an easy reach?
It apparently doesn’t matter that Trump offered no more specifics than he ever has about how he’s going to turn things around or that he has said it all innumerable times. The market heard the pep talk it wanted to hear and rose on the dreams of a rebuilt America.
I, on the other hand, sat there thinking after the speech, Anyone can say over and over how great it is going to be and what great things he has already done, but as always it remains unclear how Trump is going to do them when they depend on congress. Anyone can talk about the need to become united, but that doesn’t unite anyone. Constantly taking swipes at people everywhere (even if though they deserve it and I love to see some of them get it) isn’t going to unit them either.
So, while the commentators that I listen to (even those on CNN) talked about how he focused on uniting people, I didn’t see it happening, and I still don’t. For me, the big question still hangs out in the air: How is Trump going to get congress to implement his plans when all Democrats hate him like he’s made of spam along with probably half of Republicans? He can do small things by decree, and he’s done a lot of them in a short time; but the big things take money, and that requires congress.
It seems to me the only thing that caused stocks to rise after his speech was the change in Trump’s tone, which was less antagonistic, possibly giving hope-inflated investors some basis for believing he can accomplish things that can’t be done by executive order. But won’t that only hold for as long as he keeps a lid on himself?
(Again, I enjoy seeing him beat up the press and the Washington establishment, but I’m just saying it is not the kind of talk that markets normally like, and the only thing I can find in Trump’s talk that would have caused the market’s burst into glory on Wednesday would be his change toward a more conciliatory and “presidential” tone. No other variables or constants changed in terms of Trump.)
An alternative view of the stock market’s spike after Trump’s speech
The Rest…HERE
