RIP- Trump killed the bull market started by Barack Obama in 2009

[DemocratSinceBirth]

Many economists warned that President Trump’s focus on the stock market could have painful consequences. In recent days, it has become apparent why. Trump and his top deputies are focused on trying to stop the market slide, but they are helping drive the market down even further.

On Monday, the Standard & Poor’s 500-stock index closed in bear market territory, meaning the longest bull market for stocks in modern U.S. history is basically at its end. (A bear market is a 20 percent decline from the all-time high, which occurred in September.)

Trump blames Federal Reserve Board Chair Jerome H. Powell, his own choice for the post, for the steep stock sell-off. Many on Wall Street say Trump deserves some blame, too.

The president has complained about Powell for months, but in recent days he’s been asking around about whether he can fire Powell, which would be an unprecedented act in the United States and one that would spook markets and banks.

https://www.washingtonpost.com/business/2018/12/24/trumps-white-house-tried-calm-markets-it-backfired/?utm_term=.d2c5e91e4cdb

[UniteFightBack]

1. Toxic Trump.....need I say more? nt

[Cha]

2. So what really has caused this?

I know nothing about the stock market.

[DemocratSinceBirth]

3. In order

Fear of a slowing global economy which will negatively impact corporate profits
Rising interests rates
The possibility of a trade war with China which will negatively impact corporate profits
Government shutdown
Trump's erraticness

[uponit7771]

13. +1, even if the point could be made the rise wasn't going to be forever..

... red Don's trade war brought on a faster Fall doe to treasurys looking safer

[Wounded Bear]

4. It was due for a down turn of some type...

They artificially extended it a bit with their tax cut, but they had to know that wouldn't last. All the tax bennies to the corps and the exec class turned into stock buybacks that kind of propped things up, but that's done now. Congress won't do that again, not in this session and will probably try to rescind them, though the Senate probably won't support it and Trump would definitely veto.

Now, basically nobody is buying stock any more. Share prices are falling and everybody is looking for a clean way out, not a rescue buy. This is finally the Trump Slump starting and I expect it will continue for many months.

[uponit7771]

14. +1, We won't be back to par for years imho, red Don's trade war made t bills even more safer

[Joe941]

5. While true what happens when the market recovers?

We don't want to dive tRump credit for that...

[DemocratSinceBirth]

6. It's not going to recover any time soon.

[Joe941]

7. I hope you are wrong. My retirement depends on it :(

[DemocratSinceBirth]

9. It's not a yo yo.

[Oneironaut]

8. As usual, a Republican destroys a bull market.

Just like W did.

[DemocratSinceBirth]

10. And Hoover and Nixon

From the start of 1973 through Nixon’s resignation in August 1974, the S&P 500 fell about 50%.

https://finance.yahoo.com/news/heres-stock-market-watergate-133736317.html

"History repeats itself, first as tragedy, second as farce."

[unblock]

11. Powell and the fed has so far done exactly as the market expected

The market had long ago priced in another that hike before the end of year. It really was no surprise.

In fact, the market had previously priced in 2 or 3 more hikes in 2019; that's now back to pretty much 0-1.

The market thinks Powell and the fed have largely stopped hiking, which is a shift from previous predictions.

Pretty wacky for Donnie to think one widely expected hike would cause a bear market.

[DemocratSinceBirth]

12. If it was up to Trump ...

If it was up to Trump he would flood the economy with cheap money and a loaf of white bread would cost $5.00.