The Trump Bull Market began about 30 seconds after poor Paul Krugman
pronounced on election night:
“It really does now look like President Donald J. Trump, and markets are plunging. . . . If the question is when markets might recover, a first-pass answer is never.”
It has been one of the weirdest bull markets ever because it’s has been so calm and orderly. Instead of the usual manic cycles of Greed and Fear, stocks have just steadily marched higher, with the Dow Jones Average closing at an all time record of 26,717 last Friday. Despite all the headlines about chaos, the stock market has been bizarrely calm and optimistic during the Trump Era.
Until this week. Today the (admittedly obsolete) DJIA dropped 666 points, and is off nearly 1100 points in one week.
Forecasting the future is notoriously difficult, but even explaining the past isn’t that easy. Stock prices reflect a vast number of factors.
But here’s a question: there’s always been a contradiction between an extremely
high stock market and more effective immigration limitation, because cutting back on immigration will cause a larger slice of the pie to go to workers rather than stockholders. Did stocks go down this week, especially on Friday, because it started to look like Trump really was going to drive up wages by limiting immigration in the long run?
[Comment at Unz.com