President Trump keeps saying (in speeches) or tweeting things like this:
Donald J. Trump Retweeted FOX & friends – Wall Street hits record highs after Trump pulls out of Climate pact
Donald J. Trump Retweeted Eric Trump – Eric Trump Retweeted Reuters Business – JUST IN: Dow, S&P 500 and Nasdaq set record closing highs.
I wish he wouldn’t. Let’s be clear.
- Stock market numbers matter to individuals; not the nation.
- Low numbers don’t mean a President is doing a bad job, and high numbers don’t mean he’s doing a good job.
- The stock and bond markets are bubbles, fueled by the Federal Reserve Bank.
- As I said under President Obama, way back at Dow 14,000.
- We also have bubbles in the real estate, auto loan, student loan, forex (USD) and cryptocurrency markets. But I digress.
- During the 2016 campaign, Trump knew it and correctly said “We are in a bubble.”
Now Trump is taking credit for the high (bubble) numbers. Big mistake.
Instead, he should be warning Americans about how poor the economy’s fundamentals still are (thanks to Obama – until a lot more of Trump’s reforms get enacted). And readying us for hard times in the next recession.
“Live by the sword, die by the sword.” If Trump is going to take credit for high stock markets now, people will slam him when they fall.