Repeat after me: The Dow Jones Industrial Average is not the stock market. The stock market is not the economy. And nobody should be treating short-term shiftings in any of the above as fodder for their political fightings on Twitter.
It was likely inevitable that Donald Trump would be ignorant of all this. After a month of tweeting( 25 times) about a rising stock exchange that he falsely claimed the “fake news media” was ignoring, the president was silent during a multi-day sell-off that realise the Dow plummet from only over 26,000 on Thursday, Feb. 1, to simply over 24,000 on Tuesday, Feb. 6 — the most wonderful plummet, by percentage, in the index’s history.
This Wednesday featured a brief rebound into 25,000 territory, but the market’s increasing volatility was a sign of what was to come. Things get worse on Thursday, which recognized another thousand-point drop.
Wednesday, of course, likewise realise what has to stand as one of Trump’s most nonsensical and monomaniacal tweets 😛 TAGEND
In the “old days, ” when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good( great) news about the economy!
— Donald J. Trump (@ realDonaldTrump) February 7, 2018
The president has apparently taken to threatening world markets over a sell-off because he doesn’t think it tracks to his interpretation of the news. It’s hard not to see this the greatest instance of the hubris of power since King Canute sat on a beach and told the tide it was making a big mistake.
And yet Trump’s legion of supporters on Twitter and on Fox News joined in. This was good sport. They cheered the stock market rebound on Wednesday as they are likely cheer the Patriots roaring back into the lead in the third quarter of the Super Bowl. The Trump effect is real, they cried.
It is fascinating to listen to the financial prognosticators on Fox News Two weeks ago, trump was a genius for revving up the stock market. Last week, it was Obama’s fault that the bottom fell out. Yesterday, trump got it back on track today, it is the Democrats. Fake News.
— American Veteran (@ amvetsupport) February 8, 2018
There’s not much degree in educating Trumpists on this score, but let’s dedicate it a shot anyway. The stock market, in as much as it can be said to have a single brain, is not acting for or against the president. It doesn’t am worried about the health of the economy as a whole. If there is any one cause of the precipitous drop, it is largely in reaction to the threat of inflation, which are likely happen as a result of rising wages and low unemployment.
This is an ongoing world trouble affecting world markets, it may well continue over the next couple of weeks, and it has nothing to do with Trump’s take on good( great) news.
So far so Trumpian. But there’s an equally disturbing growth among many people who ought to know better. On the resistance side of Twitter, some users have taken the approach that if Trump is suffered politically by a stock market sell-off, a stock market sell-off must be a good thing.
Can we schedule the stock market collapse for the same day as Trump’s parade? I think that would be tight as hell.
— Chilly Wonka (@ RlyFunAtParties) February 8, 2018
It should go without saying that this isn’t a joke, and that attaining it one won’t endear the resistance to independents and others filling the middle ground.
A stock market correction doesn’t just stick it to the president, Republicans and Wall street fat cats. It affects your retirement, wiping millions off the value of 401 ks. It affects pension funds — the world’s largest merchants — most of all.
The fat cat have plenty of cushion; unless they’ve over-leveraged themselves, they’ll be fine. Your neighbor heading into retirement , not so much.
Donald Trump on a daily basis said the record stock exchange rallying was due to him& his policies.
Will he own the stock market breakdown a well?
— An_Anonymous_Source (@ Logic_Triumphs) February 2, 2018
No chairwoman , no registered political party, owns the markets. Not even if they’re annoying you by taking credit for a rallying. Not even if it would help your side in mid-term elections.
As we know too well, Trump has decided to define himself and his political legacy by opposing everything President Obama was for, whether he considers it good for the two countries or not. It would be a awful mistake for his opposition to fall into the same trap.
In short, let’s be sanguine about world markets. They rise and fall in the short term, and steadily rise in the long term( just like temperatures in our current climate-changed world, in fact .) Stock exchange indices know no registered political party. They affect everyone in myriad unseen lanes. And they will continue to do so long after the present King Canute has left office.