Trump Took Credit for Stocks Soaring. Blame Him for the Plunge?
America finally has a market to match the man in the Oval Office
By Peter Coy
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.
