But, I’ll tell you two people who probably aren't too happy: A couple of Hollywood dictators that, let’s face it, aren’t exactly fans of the president, nor he of them.
But it’s one thing not to like the president. It’s another thing to seem to want a market to decline because he is president.
TV star Rosie O'Donnell called for President Trump to be removed from office due to the market, tweeting amid the sell-off yesterday, "market down 1800 #RemoveTrumpNow."
And famed singer Bette Midler retweeted an article suggesting the international coordination to combat coronavirus is lacking, writing “YOU GOT THAT RIGHT! LET’S SEE WHO HE BLAMES!"
Actor Billy Baldwin, he’s related to the guy who plays the president on Saturday Night Live, called the president a jack***, writing sarcastically that “Your steadfast leadership during this global health crisis has instilled such confidence in world markets that the stock market continues it’s free fall this morning."
Oh, and there are many more - director Rob Reiner, author Stephen King, among others.
What these people don’t understand is how the market actually works.
The market generally predicts the health of our economy six to nine months out. Throughout the last three years, our market has done extraordinarily well because of policies like lower individual and corporate taxes and less regulation, policies all put in place by the Trump administration. As a result? We’ve had the best job growth in 50 years.
But, these multi-millionaires in Hollywood don’t care about that. They just hate Trump. And that hate for the president distorts their thinking and their ability to rationally access a situation.
Markets are selling off because of the disruption in the supply chain. We have goods that won’t get delivered (components, things that are needed from China).
|I:DJI||DOW JONES AVERAGES||34265.37||-450.02||-1.30%|
|I:COMP||NASDAQ COMPOSITE INDEX||13768.921815||-385.10||-2.72%|
And, we have a consumer base here in the U.S. and the world that will suffer because, hey, who wants to go out to a party when there’s the threat of catching a virus? Consumer spending accounts for two-thirds of our U.S. GDP so, when consumers are choked with fear and they stand down - well, you get the picture.
Meanwhile, oil is a big part of our economy. All those shale towns in Texas and Oklahoma? When oil prices decline amid a global economic downturn, those communities get hit and those businesses get hit.
That is why the market suffered its fate in yesterday’s trading, one that I do believe will ultimately have proven to be a decent buying opportunity.
I hate to break it to you: Markets aren’t that motivated by their like or dislike of a president's personality. Rather, markets and investors are motivated by policy and how that policy affects the global economy, and therefore, corporate earnings. As such, the smart money has been looking for opportunities to get back in.
Nonetheless, with a market that’s forecasting a slowdown in the next six to nine months, Hollywood ought to be praying for a miracle when it comes to ticket sales. Either that or switch to the small screen.