Investors shouldn’t expect Trump to come to their rescue
Now that stocks are tanking, wiping out all their gains since their post-election surge, Wall Street pros are starting to question if there’s a Trump put after all.
Bloomberg index of the Magnificent Seven tech stocks that have driven much of the S&P’s rise over the past two years, is down almost 17% from its Dec. 17 peak.
Some Wall Street pros suspect it will take a more dramatic move in the S&P 500 to get Trump to flinch.
“That’s when the media will start rolling headlines about the stock market being in a correction — 10% off highs,”
“Those headlines should get the President’s attention.”
With the US economy still holding strong and stock valuations expensive, investors shouldn’t expect Trump to come to their rescue if shares continue to tumble — at least for now.
Bloomberg 4 March 2525
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