Trump’s Tweets and the Dow

President Trump’s recent election has been accompanied by many ups and downs for the United States, but in terms of the Dow Jones Industrial Average, the Trump administration has proved to be a healthy change. After the election, excitement around the new president’s policy promises caused the Dow to soar to record-breaking heights. It reached 22,000 even in the midst of unrest in the administration’s leadership according to CNN. It is interesting to note the disconnect between political turmoil and the Dow as of late. President Trump’s administration has set many precedents so far and one is the number of high-level advisors that have left the president’s side in such a short window of time. With that being said, the Dow has not been severely affected. The president continues to be its biggest cheerleader and tweets predictions about it as well. CNN notes that not only is this unheard of for a president to weigh in so frequently about the stock market, but to target the Dow specifically in his comments is new. This recent rhetoric surrounding the stock market is not only unprecedented, but it will not last. The market is constantly fluctuating and what goes up, must come down. It will be interesting to see how the new president reacts to the Dow going in the opposite direction. Will he remain outspoken or zip his lips? While we are all inclined to look at all of president Trump’s statements with a grain of salt, the Dow does actually indicate the economy is doing well. CNN Money questions if that the rise of the Dow is due to the new president’s pro-business agenda or lasting effects of President Obama’s rule? We will never know. Nonetheless, confidence is high in the stock market since the election in 2016 and as an economic indicator, the Dow is providing no need to worry about the market’s health. What is on the horizon though, is the reality that the stock market is a malleable entity and it will fluctuate. Confidence and campaign promises are keeping the Dow in an upward rise these days and despite threats of Russian probes and potential for a missile attack from North Korea, the stock market has remained stable for the most part. Stay tuned for more updates on the continuing saga of an interesting correlation between a rocky administration and a unique rise of the Dow Jones Industrial Average in next week’s edition of “Trump’s Tweets.”

 

Sources: http://money.cnn.com/2017/07/20/investing/trump-wall-street-stock-market-record/index.html

http://money.cnn.com/2017/08/02/investing/dow-22000-trump-apple-wall-street/index.html

http://www.marketwatch.com/story/trump-tweet-shows-hes-a-dow-jones-industrial-average-man-2017-08-01

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