Friday, January 20, 2017

Trump Manages to Choke His Own Rally

Donald Trump was headed for an amazing stock market rally to 20000, but on December 20, after a 1642 point surge, it stalled. Today, a month later, it has drifted more than 181 points below the December 20 high point of 19974 (Jan. 20 – 19793).

Most of the rally was correlated to optimism for Trump’s likely tax, regulatory and spending proposals. But when examining the polls, an inference can be made that he choked off his own rally with poor behavior, most highlighted by his ill-tempered and poorly thought out tweets. His polling numbers have dropped after about a month of post-election improvement (an 11-point drop in confidence in mid-January). He is stepping on his own message of positive change by spreading confusion and conflict.

One thing most of the public (69%) and nearly all the investor class would like to see much less of is Donald Trump’s tweets.

The Dow will likely hit 20000 soon, but for now, the Trump surge is the Trump stall.

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