Warning – this is going to piss half of you off and make the other half think I am a Trumper. Sorry to disappoint all of you in advance.
There’s been a lot of angst and finger pointing in recent weeks about the downturn in the stock market. The easiest target, and the most vocal, has been Donald Trump. I think I’ve been pretty balanced with Trump over time. I said he wasn’t responsible for the 2017 stock bull market and while I’ve poked some fun at him here and on Twitter and derided him over the years for talking about the stock market I really don’t think we can blame him for this downturn.
You might be wondering why I think this? Well, this all started long before most Americans think it did. Yes, this downturn started way back in January when global stocks peaked. Have a look for yourself.
You see, the deceptive part about this downturn was, in the USA, the S&P 500 kept ticking higher over the summer of 2018 while global stocks had peaked and mostly continued to flatline or move lower. But the correlation here was still 90%+. In other words, global stocks started turning south long before Donald Trump went on a series of Twitter tirades.
And that’s the problem with the “Trump made the stock market crash” narrative – if he made US stocks crash then he must have also made the entire global stock market crash. Does anyone really believe the President of the USA is the main influencing factor