The president claimed credit for stock market records. Does he deserve blame for the plunge?
Green means up and red means down in the stock market. Lately there have been many red days. But the true color of today’s market is golden orange—the hue of the pompadour atop the head of President Donald Trump. Because for better and for worse, this has become Trump’s stock market. Until October, the extended bull market was reasonably called the Trump Bump. The decline over the past few months, particularly since the start of December, is the Trump Slump.
Few would dispute that Trump is a volatile personality who’s having a volatile presidency. He’s shaken the establishment to its roots. Yet for most of his time in office, volatility in the stock market was below its long-term average, with the exception of a spell in February and March. Investors’ calm always seemed a bit out of step with reality. But fluctuations do tend to increase when prices are trending down, and that’s exactly what happened in 2018’s fourth quarter. The Chicago Board Options Exchange Volatility Index hit 36 the day before Christmas, up from below 15 in the summer and early fall.
America finally has a stock market to match the man in the Oval Office.
One question to ask at this point in the turmoil is how much Trump has affected the stock market—for better during the bump and for worse during the slump. The opposite question is how much the worst year for stocks since 2008 has affected Trump. Will the market rout chasten him, cause him to retreat from some of the policies and language that have sent markets into a tizzy? Or will it drive him to attack the status quo even more ferociously to prove himself right and recapture some of that bull-market magic?
Bu hikaye Bloomberg Businessweek dergisinin January 07, 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Bloomberg Businessweek dergisinin January 07, 2019 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
Instagram's Founders Say It's Time for a New Social App
The rise of AI and the fall of Twitter could create opportunities for upstarts
Running in Circles
A subscription running shoe program aims to fight footwear waste
What I Learned Working at a Hawaiien Mega-Resort
Nine wild secrets from the staff at Turtle Bay, who have to manage everyone from haughty honeymooners to go-go-dancing golfers.
How Noma Will Blossom In Kyoto
The best restaurant in the world just began its second pop-up in Japan. Here's what's cooking
The Last-Mover Problem
A startup called Sennder is trying to bring an extremely tech-resistant industry into the age of apps
Tick Tock, TikTok
The US thinks the Chinese-owned social media app is a major national security risk. TikTok is running out of ways to avoid a ban
Cleaner Clothing Dye, Made From Bacteria
A UK company produces colors with less water than conventional methods and no toxic chemicals
Pumping Heat in Hamburg
The German port city plans to store hot water underground and bring it up to heat homes in the winter
Sustainability: Calamari's Climate Edge
Squid's ability to flourish in warmer waters makes it fitting for a diet for the changing environment
New Money, New Problems
In Naples, an influx of wealthy is displacing out-of-towners lower-income workers