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The 'Trump put' saves stocks as investors bet the president won't let the market collapse

Bucky

Bucky

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Don't underestimate the power of the "Trump put."

Analysts say the stock market has been hanging in after trade talks with China hit a rough spot because investors believe a deal is coming, and they also expect President Donald Trump to take action if the stock market looks like it is heading for a real meltdown.

The put is the belief that Trump will not let the stock market collapse, since he views it as a measure of his own success. On Friday, stocks cut steep losses after Treasury Secretary Steven Mnuchin said talks with China Vice Premier Liu He were "constructive," as they ended for the day.
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The 'Trump put' saves stocks as investors bet the president won't let the market collapse

Trump knows what he is doing.
 
I don't see the government manipulating the stock market as a good thing, at all.
 
Mycroft said:
"they also expect President Donald Trump to take action"

So...exactly what action do they think Trump will take?
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I think we got our answer:

Over the course of the past two days, the United States and China have held candid and constructive conversations on the status of the trade relationship between both countries. The relationship between President Xi and myself remains a very strong one, and conversations....

....into the future will continue. In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!
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Donald J. Trump on Twitter: "....into the future will continue. In the meantime, the United States has imposed Tariffs on China, which may or may not be removed depending on what happens with respect to future negotiations!"

I have heard that the U.S gave those negotiations a 1-month deadline. We will see.
 
Chomsky said:
I don't see the government manipulating the stock market as a good thing, at all.
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Shhh! (Economic and market manipulation is okay when a Republican, even in name only, is doing so for the benefit of the few needing a new yacht... did you forget or something?)
 
The president doesn't control the stock market. The Fed can influence it with interest rates. But the president does not control the Fed.

The stock market can go into a crash at any time and no one knows how to prevent that.
 
Chomsky said:
I don't see the government manipulating the stock market as a good thing, at all.
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The manipulation you see is the publically traded companies wondering why they depended so heavily on China as a cheap alternative. Every other president gave them cover by not enforcing agreements so the cheap substitutes kept rolling in. Now they have to pay the tariff, which, BTW goes into the US general fund to be shoveled into one government furnace or another.
 
chuckiechan said:
The manipulation you see is the publically traded companies wondering why they depended so heavily on China as a cheap alternative. Every other president gave them cover by not enforcing agreements so the cheap substitutes kept rolling in. Now they have to pay the tariff, which, BTW goes into the US general fund to be shoveled into one government furnace or another.
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I have no idea how you call that manipulation. But I am definitely seeing manipulation by Trump, via the fed.
 
Chomsky said:
I have no idea how you call that manipulation. But I am definitely seeing manipulation by Trump, via the fed.
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Who ever came up with the idea a president should just ignore the fed when their rate decisions make the difference between a booming economy and a stall. They still operate independently, it’s just now we have a president who is not afraid to speak out when he feels the faucet is too tight. Who else should remind the fed that they can’t hide behind their computer screens when they are killing the housing market for actual, tax paying human people? Got a second mortgage? I guess there is nothing like a second mortgage rate increase kick in the nuts to make you want to work overtime again. Renter? Rents go up on raises, never down.
 
chuckiechan said:
Who ever came up with the idea a president should just ignore the fed when their rate decisions make the difference between a booming economy and a stall. They still operate independently, it’s just now we have a president who is not afraid to speak out when he feels the faucet is too tight. Who else should remind the fed that they can’t hide behind their computer screens when they are killing the housing market for actual, tax paying human people? Got a second mortgage? I guess there is nothing like a second mortgage rate increase kick in the nuts to make you want to work overtime again. Renter? Rents go up on raises, never down.
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It's not the President's job to direct the Fed. The administration does Fiscal policy, while the Fed does monetary policy. Sorry.
 
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