US president Donald Trump always celebrates when the stock market is doing well so it is not surprising that on Wednesday he tweeted in celebration as the Dow Jones Industrial Average (DJIA) rose above the 25,000 mark.
From this January to last January the Dow Jones is now basically flat
On Wednesday the 29th of January 2019 Trump tweeted: "Dow just broke 25,000. Tremendous news! 1:54 PM - 30 Jan"
While this is positive for investors, since the Dow Jones has been doing badly lately, one needs to see how this compares with last year around this time. Investors want their investments to increase in value over time. A look at the history of Trump's tweets shows a forgetful approach to the fluctuations of the Dow Jones over an extended period.
On January 4, 2018 just after Trump signed into law his tax cuts that helped mostly businesses and the wealthy he tweeted: "@realDonaldTrump Dow just crashes through 25,000. Congrats! Big cuts in unnecessary regulations continuing.
9:48 AM - Jan 4, 2018"
Trump tweeted a third time on July 14, 2018 that "The Stock Market hit 25,000" meaning the Dow Jones average. He also said that jobs were at an all-time record and that he had fixed some of the worst trade deals and conditions ever seen by any government.
2018 was a bad year for stocks
The year 2018 was actually the worst year for stocks since 2008, the year of the great recession. While some factors causing the slide were due to Trump, others were not.
The present economic expansion has been continuing for so long, until recently slowing a bit, that many investors have been wondering how long their luck would last. A combination of global and domestic events may have convinced many that as of now things will begin to decline.
Trump's trade war with China is one of their concerns, in that it could have a negative effect on some farmers such as those who grow soybeans and also raise consumer prices. Economic growth has slowed in the EU and is also expected to slow down in China next year. The drama in the UK over Brexit is causing worries as well. Some worry also that the Feds may raise interest rates slowing growth.
As markets dropped during the late fall, Trump stopped talking about it, but talked about such things as low gas prices and low unemployment. As stocks have risen in January, he is back at his old boasting. As usual, he does not place it in context which shows that the stock market actually had a very bad year in 2018.
The issue is also covered on CNN.
Previously published in Digital Journal
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