Trump’s Stock Market Now Worst Since Double-Recession George W. Bush

March 13, 2020by Christopher Anstey, Bloomberg News (TNS)
APTOPIX Financial Markets Wall Street

WASHINGTON — The return on stocks since Donald Trump’s presidential election win in 2016 has slumped to 24% thanks to the historic rout the past three weeks, undercutting what had been a better-than-average gain for American leaders over the past half century.

That leaves him on course for the worst performance since George W. Bush’s second term, by the metric of total return on the S&P 500 Index. Equity investors saw more than double the returns under Jimmy Carter, who battled stagflation and foreign-policy crises in the late 1970s.

The lack of inflation nowadays means that in real terms, Trump still comes out ahead of Carter, who lost his reelection bid to Ronald Reagan. But by any measure he’s now well behind the 63% climb in Barack Obama’s second term. That Obama mark is slightly less than the total return for Trump when Wall Street hit a record high on Feb. 19.

Equities may still rebound by Election Day on Nov. 3 and many strategists, at least before Thursday’s crash on Wall Street, were predicting a recovery once the coronavirus peaks, potentially in the second quarter. But the sudden collapse in shares underlines the communications challenge for Trump, who had repeatedly touted the gains since his election as a key achievement for his administration.

To-be-sure, no other modern U.S. leader has faced an event quite like a global health pandemic. Its spread is causing an unprecedented shock to economies all over the world as policy makers grapple with ways to shield their populations from the deadly virus.

The S&P 500 crashed into a bear market on Thursday after Trump’s Oval Office address the evening before failed to spur confidence that the administration will avert the first recession since the global financial crisis. Trump stopped short of a broad-brush fiscal package.

And his assurance that “no nation is more prepared” for the coronavirus conflicted with the assessment the next day from the leading U.S. infectious-disease official that America’s testing system is failing.

“The longer the social-distancing without offsetting stimulus continues, the lower the odds of Trump winning the election will go,” Evercore ISI strategists including Dennis DeBusschere wrote in a note Thursday.

———

©2020 Bloomberg News

Visit Bloomberg News at www.bloomberg.com

Distributed by Tribune Content Agency, LLC.

In The News

Health

Voting

Wall Street

Fight The Man: What GameStop's Surge Says About Online Mobs
Wall Street
Fight The Man: What GameStop's Surge Says About Online Mobs

It's a fable for our times: Small-time investors band together to take down greedy Wall Street hedge funds using the stock of a troubled video-game store. But the revolt of online stock-traders suggests much more. The internet is shifting society’s balance of power in unanticipated ways. And the... Read More

SEC 'Closely Monitoring' Stock Price Volatility As GameStop Saga Continues to Unfold
Wall Street
SEC 'Closely Monitoring' Stock Price Volatility As GameStop Saga Continues to Unfold

WASHINGTON - The Securities and Exchange Commission said Friday it is "closely monitoring and evaluating" the extreme price volatility of certain stock trading prices over the past several days. The announcement came at the end of a week when amatuer traders organizing on the social media... Read More

Scaramucci Predicts Biden Win 'Great for Markets'
Wall Street
Scaramucci Predicts Biden Win 'Great for Markets'
November 9, 2020
by Kate Michael

WASHINGTON — Less than 24 hours before news organizations called the election for President-Elect Biden, financier Anthony Scaramucci predicted, “It’s likely to be Pennsylvania that tips this thing… and [Biden’s] election is great for the markets.” Speaking at an Axios News Shapers event, the SkyBridge Capital... Read More

Biden Says Trump ‘Only Cares About the Stock Market’ in Town Hall Meeting
2020 Elections
Biden Says Trump ‘Only Cares About the Stock Market’ in Town Hall Meeting

PHILADELPHIA — Joe Biden railed against President Donald Trump’s handling of the coronavirus pandemic and framed the 2020 election as a choice between Main Street and Wall Street during an outdoor town hall meeting Thursday just outside his childhood hometown of Scranton. The former vice president,... Read More

Trump’s Stock Market Now Worst Since Double-Recession George W. Bush
Wall Street
Trump’s Stock Market Now Worst Since Double-Recession George W. Bush

WASHINGTON — The return on stocks since Donald Trump’s presidential election win in 2016 has slumped to 24% thanks to the historic rout the past three weeks, undercutting what had been a better-than-average gain for American leaders over the past half century. That leaves him on... Read More

Tech-Driven Stock Market Plunge Raises Worries Long Rally Is Finally Over
Wall Street
Tech-Driven Stock Market Plunge Raises Worries Long Rally Is Finally Over

November 21, 2018 By Jim Puzzanghera WASHINGTON — There may not be an alert on your iPhone yet, but it looks as if the years-long stock market party might just be over. A recent plunge in share prices of U.S. technology giants spread like a software... Read More

News From The Well
scroll top