Posted by OHG on May 24, 2018 at 11:20:42:
In Reply to: Re: Book: Did Trump cause the stock market downturn? posted by Carl2 on May 24, 2018 at 11:18:16:
: : The market is always nervous about what Trump will do next, but there are always other causes for a pullback, such as interest rates and economic policy.
: : In this case, the two are related. The market is worried that the economy will overheat, causing interest rates to move quickly upward (if you can make guaranteed money by buying CDs, why risk it in the market in uncertain times?).
: : The market is also worried that the Republican tax bill that channeled money to the rich and to the largest corporations was ill timed, pumping more money into an already overheating economy resulting in a likely increase in interest rates. The market responded by dropping 10%, with two 1000-point drops in one week.
: Over the past few days, the market has gone up or down depending on what words come out of Trump's mouth. Therefore, it seems crazy to me to even be in the market.
Maybe he's playing the market. Maybe he's day trading, making the market move up or down, to make a few million extra bucks on the side.