Why does the stock market and wall st seem to do well under Trump?

[GusFring]

Is it just the lack of regulations?

[sop]

1. It did really well under Obama/Biden, too.

[GusFring]

8. True, but it seemed to be cap. Maybe it would've went above 20k with Hilary

But for whatever reason, wall st really loves Trump. And I just don't get it. Has there been more Fed intervention or something?

[sop]

26. I think it's just the continuation of strong gains made during the entire Obama presidency.

Trump inherited a booming economy, with very low unemployment and decreasing deficits. It took eight years of steady growth during the Obama/Biden administration to recover from the damage done by Bush to get to that point. Hillary would have probably continued the same policies.

Trump gave corporate America a huge tax cut, more deregulation and sharply increased deficit spending. McConnell's corporate-friendly judges also helped the markets. Economic numbers couldn't help but go higher. And, typically, Trump took all the credit for the Obama/Biden gains.

Now it looks like Trump has a huge problem just before the election. His "Trump economy" is crashing, and unemployment is going through the roof. I guess he didn't plan on a virus ruining his re-election chances. He took all the credit for the good, now he'll try to blame others for the bad.

[Stallion]

32. The Trump Stock Market Performance has Never Been Better than Clinton or Obama

there is a website with a daily performance chart that proves this

https://www.macrotrends.net/2481/stock-market-performance-by-president

[ProfessorGAC]

33. Look At The Numbers Gus

I admit that before the CV 19 in went up around 58% in 37 months, or around 18% a year.
But this virus is not the only reason the market fell.
It was an extrinsic trigger that started an overdue correction.
The system has been elevating far too many equities where corporate growth & cash flow was rooted in massive debt. Debt to equity ratios as high as 5 with companies that were at 1.5 just 5 years ago.
Companies not showing profit (think Uber or Lyft) seeing 20% year over year growth.
The market was inflated anyway. The virus prompted many investors to take profit now! It dropped so far, now some investors are bargain hunting.
Also, including the bad first 2 years caused by 43s massive recession, the Dow had an 8 year annualized rate of 12%.
As of 208 EDT today, the Dow is up around 20% in 38 months. That's 6% per year.
Don't let anyone fool you into believing that the fall of the major indices is wholly due to CV19.

[Captain Stern]

35. It seemed to cap? How so? It was going up every single year.

The last year before trump took office , the dow went from 15,988 to 19,804. It doesn't seem to have been capped at all.

Perhaps I'm wrong, and you have evidence that will change my mind. I look forward to seeing it.

[Arkansas Granny]

10. And considering that Obama really was handed a mess upon inauguration,

he deserves a lot of credit for the rebound that Trump has completely ignored.

[kimbutgar]

2. Some type of greedy sociopaths

I worked in the stock market/ financial industry and knew a lot of bastards like MF45. Money is their God and the only people, they care about are their immediate families. I got mine you’re on your own sucker mentality. And ”I worked hard why should I give my money to deadbeats or my upbringing was tough and I fought for everything I have I’m not some lazy minority”. I heard that shit all the time. I liked the money on that job but didn’t like a lot of the people at the top.

Same mentality as MF45.

[MoonRiver]

23. After watching the Wolf of Wall Street, I felt like I needed a shower.

[CentralMass]

3. Wall At doesnt give a damn about Main St.

[liberalmuse]

4. Because they know they will get corporate welfare when things get rough.

It is also a bubble that is going to burst eventually when the GOP runs out of ways to "pad" it or make it look better than it actually is.

[RockRaven]

5. The stock market is dominated by rich people jerking each other off...

and with Trump's tax cuts for corporations and wealthy individuals, they were feeling very frisky.

[Aristus]

6. The rich took their tax cut and invested it in stocks.

The trickle-down myth that they invest in employment infrastructure, thereby 'creating jobs', is the worst kind of perverted, poisoned rationale for continuing to give the idle rich more and more, while the people who do the actual work get less and less.

[ooky]

17. And then it all "evaporated" when the market crashed.

All the Republicans ended up doing is adding 150 billion to our debt with nothing to show for it.

[DonaldsRump]

7. It's not doing very well, is it? n/t

[Johnny2X2X]

9. Did better under Obama

Trump has lived off the Obama-Biden economy for 3 years now.

[flibbitygiblets]

11. I'm guessing a billionfold return on their "free speech" political donations

[still_one]

12. You realize the market is down about 30+%? Since trump has

been his office, his reckless policies from trade wars to the handling of the healthcare crisis have caused volatility and uncertainty in the markets, and because of him ignoring the risks of the current healthcare crisis 3 months ago, to getting rid of the pandemic response team, we are going into a severe recession, and possibly worse

[ProfessorGAC]

34. Actually, It's Up Around 20%

That's still less than half the average annualized return under Obama.
It fell around 30% from it's high, but only spend a day below where it was on Inauguration Day 2017.
Read my post above. The fall was NOT totally based on the virus situation. It was grossly inflated.

[unblock]

13. a number of reasons

first, up until covid-19, we had a continuation of a nice, steady expansion.

second, the tax law donnie changed and lessening of enforcement of regulations has made it easier for corporations, particularly the bigger ones, to become even more profitable. lowering the corporate tax rate obviously was a big help many public companies, plus it's easier to merge, easier to buy stock back, easier to get away with polluting, etc.

note that this is not necessarily good for the *economy*, but it's good for corporate profits, and therefore good for the stock market.

third, there's an excess of investment capital, so there's a bubble in certain assets. rich people gotta invest somewhere, so the stock market and the bond market and commodities have benefited from demand, causing prices to go up for no organic reason, just supply and demand of investments.


covid-19 has changed much of this, but note that everyone in washington is eager to pour money on the problem. not saying some federal rescue isn't appropriate, but just noting that it will be very easy for them to over-stimulate and resume the bubble after the pandemic passes, rather than take this opportunity to let the economy fix its structural problems.

[ck4829]

14. Why does the stock market and wall st seem to do well when there is news of mass layoffs?

That's the bigger question we should be focusing on.

[DrToast]

15. It doesn't

The stock market and the economy does better under democrats. You’re buying his propaganda.

[Hoyt]

16. Does better under Democrats, historically.

[Anon-C]

18. Insider trading, nepotism, cronyism, collusion - thats what this cabal is all about.

Privileged access to market-making moves from the administration for the few is Trumpism: from Rep. Chris Collins to the Senators and others we will discover who knew well before the public and used that knowledge to tend to theirs while the public was left behind.

[empedocles]

28. Stockbacks-pump up stock prices-trump brags of high stock market -execs cash

in lucrative stock options [which were designed to reward individual corp performance, not just boost stock prices] -

Cycle was repeated many times. That cash cow milked out now.

[Proud Liberal Dem]

19. Trump has- up to this point- benefited from Obama's economy

I don't know exactly how much Wall Street "likes" Trump. If Markets operate rationally, they should, realistically, prefer stability in terms of Presidential leadership, not Trumpian chaos. I tend to look it as Trump hasn't done enough harm to Obama's economy, not that he's responsible for any kind of real betterment of it. That's just my theory.

[Demsrule86]

20. It is not doing well...he has given up much of the gains he made.

[npk]

25. +1000 n/t

[ooky]

21. Not only did the market have more consistent gains under the Obama admin., it likely would have

fared better under Obama during a pandemic, who had a pandemic plan unlike Trump, which might have inspired a little more confidence in the market under adverse conditions. Not saying it wouldn't have dropped, but I'm guessing it might not have crashed as violently as it did with the incompetent Trump administration.

[Disaffected]

22. He has been

ginning the market by cajoling the fed to cut interest rates and, promoting massive tax cuts to corporations most of which went to stock buybacks. I am afraid it is a huge bubble that is going to eventually pop, Covid-19 or not.

[Pachamama]

24. You mean the Obama/Biden Stock Market he inherited?

I think the bigger mystery you should be asking about is why the federal deficit goes up under Republicans and what did the Trump tax cuts really do?

[DinahMoeHum]

27. Turned out to be nothing but a big-ass bubble. . .

. . .that busted when this pandemic hit. Any gains made when Trump first took office are now all wiped out.

The market is not a rational animal, it will do crazy things at times. Even the old pros like Warren Buffett aren't perfect, just been around long enough to see all kinds of silly shit.

And, I gotta say this: the markets were way past due for a correction. If it took a pandemic to do this, so be it.

Too much silly money sloshing around, over-hyping certain stocks; and too much Silicon Valley venture capitalist money wasted on silly-ass service companies and apps which never showed any real profit (though it must be said that particular spigot was getting turned off starting last year)

In the early weeks of this, although my portfolios were taking it on the chin like everybody else, I was actually laughing: Mother Nature and Mister Market together gave Trump the finger and a vote of no confidence.

Make no mistake, though: the markets are still very volatile; no matter how many rises this market makes short-term, it will almost certainly be accompanied by sharp drops.

Just my 2 cents.




#newrostrong

[captain queeg]

29. I thought your OP title was a set up for a joke and was looking for the punch line.

[orwell]

30. The bulk of the Trump Corporate Tax Gift...

...turned into companies buying their own stock. This reduces available shares on hand and boosts earnings per share which allows the market to go higher on the basis of multiple expansion.

That reality along with low interest rates effectively forces capital into stocks. If you receive a low rate of return on fixed income assets (bonds) you are willing to take on more risk (stocks) to boost returns.

Add to this the fact that risk has been all but eliminated under both President Obama's bank bailout and now "stable genius" Trump's 2T dollar corporate welfare program. When you eliminate systemic risk from the markets you encourage gross mispricing of assets.

That is why even after the recent sell off in stocks we are still as historically over valued levels. In fact the case can be made that even after the recent 30%+ plunge in the market we were as over valued as we were before the 2008-09 market crash.

This is what happens when you remove risk in the pricing of financial assets. Nothing makes sense...

[doc03]

31. It has done well for years because there is nowhere else to put your

money banks, bonds and MM funds pay no interest. Then when Trump took office he gave the
the rich and big business more money to invest or buy back their own stock. It was all another
giant bubble just like in 2008.