Sorry to repeat myself, but President Trump keeps hitting the idea that the stock market is making new highs and the media should talk about it. I could post video but, just to keep it text-y, here are Twitter examples from the last couple of days:
Aug 1 – Stock Market could hit all-time high (again) 22,000 today. Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!
Jul 31 – Highest Stock Market EVER, best economic numbers in years, unemployment lowest in 17 years, wages raising, border secure, S.C.: No WH chaos!
Big mistake. Why?
- Candidate Trump understood that the stock market was a Fed-inflated bubble.
- Candidate Trump understood that the unemployment numbers are fake and disguise the ongoing suffering of Middle America.
- If President Trump is now tying his reputation to those numbers, what happens when they reverse?
The stock market IS overvalued, and WILL go down eventually, if only for “cyclical” reasons. Maybe down a lot. What happens then?
Consider that Switzerland’s central bank is now a huge holder of U.S. stocks First…Why? Why would they be in the business of propping up the U.S. stock market? Second…What happens when they change their minds, and sell?