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Tuesday, August 27, 2019

Media now claims Trump's tweets cost $500 billion



Forbes magazine ran a column, "Trump’s Tweets Cost Investors Over $500 Billion."

Given the media's constant berating of the 1%, I was not sure if that was a good thing or a bad thing.

But writer Chuck Jones assured me that President Donald John Trump's tweets were destroying the stock market.

Jones wrote, "In the course of 2 minutes on Friday President Trump unleashed 6 tweets about Fed Chairman Powell’s speech at the central bank’s Jackson Hole annual economic policy symposium and China announcing that it would impose 5% to 10% tariffs on $75 billion of U.S. exports to China. The stock market reacted immediately and intensely negatively to Trump’s first set of tweets sending the Dow Jones 30 Industrials down about 400 points in 15 minutes and 500 points within an hour.

"While the Dow and other indexes were essentially flat to up a bit during and after the Fed Chairman’s speech, the 120 seconds of tweets erased over $300 billion in value in those 15 minutes and the markets fell further during the day. Trump followed up with 4 more tweets later in the day, one of which was joking about the Dow dropping 573 points as investors had lost almost half a trillion dollars. For the day over $500 billion in equity was erased."

His portrayal of President Trump as a madman who enjoys inflicting pain on stockholders is an insult to the intelligence of his readers who have enjoyed a $7 trillion increase in their equity holdings since America elected Donald Trump president.

But Jones wrote his piece on Saturday. On Monday, the Dow and the rest of the stock indices had recovered somewhat.

Once again the Never Trump and Antifa crowd showed their ignorance of capitalism. Last November and December, the little Maoists misread an overdue correction, in which stock prices fell, for a crash and gleefully predicted the economic collapse of the western world.

That a president could trigger the paper loss of a half-trillion bucks like that shows the presidency is too powerful.

But the summer lull in trading which exaggerates both the good and the bad will end next week as Martha's Vineyard and the Hamptons close for the season.

Jones was particularly thick in his column ("This must be music to Putin’s ears") and unaware of reality ("The U.S. actually does need China").

I do not think Jones is an unintelligent man. I believe he is blinded by his rage over Americans having the audacity to hope that a billionaire playboy could restore the U.S economy to its position of world dominance.

While the Dow may have fallen 2% or so in one day (as often happens) the fact is under Chairman Xi, the Shanghai Composite Index has lost about half its equity in the last four years.

On June 12, 2015, it stood at 5,166.35. Our Dow stood at 17,898.84.

Shanghai closed at 2,909.11 on Monday. Our Dow closed at 25,849.95 on Monday.

President Trump's plan is to make the American economy independent of Red China.

His critics just want to be rid of the president, so they grab at any straw they can in an attempt to bring him down. Time and again, they wind up looking foolish.

This is just another example.

President Trump's tweets cost me nothing because I separate my investments from my politics. Had I pulled out of the market upon Obama's election, I would have missed a pretty good run up of 70% over the next 8 years.

I suggest others do as well.

13 comments:

  1. Steve Forbes - another billionaire jealous of PDJT. He is president and he is not. His inherited magazine represents his views.

    ReplyDelete
  2. It cannot be stated too often.

    The Value of Stocks is of only Two kinds:

    1. Stock ownership, aka Shares, being portional ownership of any given company, produces, when company is profitable, dividends, aka your portional share of profits.

    OR

    2. Stock ownership trading, aka selling your shares to buyers, produces Gain, for Seller, when Buyer pays More than Seller paid. Aka, Buy Low, Sell High.


    TWO completely different financial dynamics.


    1 is most lucrative when company profits are both steady and increasing.

    The other is making a quick buck turnover.

    The first requires thoughtful resolve to play the long game.

    The second merely requires buyers who will pay to acquire. Aka, suckers who are certain you, the seller, are the mark.

    Both are the marks.

    Both crave a quick buck gain.

    Neither gives a fuck about playing the long game.

    MAGA is ALL about the long game.

    The long game is intrinsically about everyone.

    Short game, short stroke, short bus quick buck players are the cause of everything not MAGA and not long game America.

    ReplyDelete
  3. What this shows is that Wall Street is incompetent and it's investors are using intuition to make investments which is dangerous and stupid but it's easy. Once again Trump reveals to the citizens how dangerous some of the things we've let grow and influence our live are and that they need to be balanced and maybe ignored.

    ReplyDelete
  4. Bathhouse Barry’s market is a bad example, sort of like saying something went up 100% when it went from 0 to 1. Vanguard provides a holdings chart of your (my) Kwon over a ten year period. It clearly shows a flatlining between roughly 2012 and 2015. Sucky times. Basically what a socialist market would look like. And I say again to investors out there: Don’t think for one minute that your investments will be safe if the LibCommies assume power. In their heart of hearts, that money is theirs, not yours.

    BTW, whatever happened to Barney Fag? Got off scot-free after causing the 2008 Crash. That whole thing really chapped my ass and lowered/eliminated expectations of any meaningful punishments for the Collusion Coup Crew.

    ReplyDelete
  5. Uncertainty hurts the stock market, and his tweets create it. If he understood anything about public stocks he wouldn't have failed his investors so miserably with THCR.

    ReplyDelete
    Replies
    1. MAGA investors are not quick buck hustle fuckers.

      MAGA investors do not get their dingles all full of tingles as the stock trader con artists do.

      And these hustlers are all tingly now, both is sweaty balls fearing they did not sell soon enough and in drooling, quiverings at the thought that decreasing stock prices will give them a shot at: Buying Low!!!! And Selling High!!!!

      These short bus, quick buck fucks are all gathered around the craps table.

      Craps table mentality.

      Not investor grade.

      Craps table minded: go to Vegas.

      Investor minded, aka, MAGA, Think Twice, Cut Once.

      In gambling land, there are always more losers than winners. Always.

      Delete
    2. Uncertainty is the stock market.
      .
      If you want certainty, buy an annuity.
      .
      And if our allies have been sucking as dry as ours have since 1945, then they dont need any certainty either.
      .
      I am certain we have been paying to protect our allies while they dont pay their fair share of NATO defense expenditures. Why should they be certain that we will continue to be fools for these blood suckers any longer?

      Delete
  6. There's an old saying: The stock market is not the economy. Think about it. The market rose all through the Obama years, after bottoming out in March 2009 (around DOW 6600), and the economy was not great. There will be a transition period as Trump's policies hammer China and U.S. multinational companies, whose earnings depend on the status quo, feel the pain. I think for the longest time the marketplace didn't think Trump was serious when he told them his plans for reigning in China. Now I think the message is starting to sink-in.

    ReplyDelete
    Replies
    1. Precisely.

      Reduce the effects of the crap shooter "investors" and increase the effect of the MAGA investors, aka long term, dividends as true gains, investing in America.

      The crap shooters can shoot their craps out back, in the alley behind the bar.

      Delete
  7. Trump's views on America are well known and documented since at least 1980.

    Today he is putting into place policies that represent that and it includes the economy.

    So, what was that about uncertainty?

    ReplyDelete
  8. This comment has been removed by the author.

    ReplyDelete