Why Don’t Stock Markets Care about Donald Trump?

Despite a revolving door at the White House, unsuccessful policies and a controversial commununications strategy, Donald Trump is presiding over a rising stock market

Cherry Reynard 18 August, 2017 | 10:32AM
Facebook Twitter LinkedIn

Donald Trump

Donald Trump has been an unpredictable presence in the White House. From rhetoric on trade, to agitating in North Korea, President Trump has seemed to be an unstable hand on the tiller. But markets don’t seem to care. The S&P 500 continues to tick higher. This is in notable contrast to the political discount afforded, until recently, to the Eurozone, and, currently, to the UK. Why doesn’t Trump matter to markets?

The Trump Bump

Stock markets soared when Trump was elected in November last year. The S&P 500 climbed 5% as investors took Trump at his word, believing that he would deliver tax cuts, higher infrastructure spending and economic growth of 4%. This momentum has undoubtedly slowed as investors have realised that President Trump is unlikely to be able to deliver on many of these promises, but US markets continue to climb higher and, until the past few days, had continued to hit new highs.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Facebook Twitter LinkedIn

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Alphabet Inc Class C2,856.12 USD0.00Rating
Coca-Cola Co53.73 USD0.00Rating
Ford Motor Co19.75 USD0.00Rating
Microsoft Corp329.68 USD0.00Rating

About Author

Cherry Reynard

Cherry Reynard  is a financial journalist writing for Morningstar.co.uk.