On Christmas Day 2018, President Trump shared his thoughts on the market, stating:
“I think it’s a tremendous opportunity to buy. Really a great opportunity to buy.”
At that time, the U.S. stock market was experiencing a significant downturn. From September 20, 2018, to Christmas Day 2018, the S&P 500 plunged by 19.78 percent, hitting a 20-month low and coming dangerously close to an official bear market.
Despite this turmoil, Trump accurately identified the moment when the market hit its low. Remarkably, from Christmas Day 2018 to Christmas Day 2019, the S&P 500 surged by more than 36 percent.
In retrospect, buying the dip seems like an obvious choice. However, at the time, it took considerable conviction and courage to act on such an idea.
It’s easy to offer guidance after the fact, and one could argue that Trump deserves recognition for his bold market prediction. Yet, it’s also plausible that he was aware of factors that influenced his optimistic stance… Continue reading
