How Wall Street learned to stop worrying and love Trump (by Vox)
The attitudes of investors remind me of some history lesson from 1929. The true believers in Wall Street were overcome with irrational exuberance. And the higher it goes, the harder the fall.
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https://www.vox.com/policy-and-politics/2018/1/17/16897656/trump-wall-street-stock-market
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“The markets have pretty much put on blinders.”
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President Donald Trump has had an erratic start to 2018 — he’s threatened nuclear war on Twitter, seen growing questions about his mental stability, and stirred controversy in disparaging immigrants from what he reportedly deems “shithole countries.”
Despite the uncertainty emanating from the White House, Wall Street is off to its best start in years: the benchmark S&P 500 index is already up about 4 percent in 2018. If such a steep upward trend were to continue (which it likely won’t), the index would end the year up by roughly 160 percent.
The conventional wisdom says markets should be wary of an unstable political situation such as that posed by Trump. But they don’t seem too worried.
Before Trump’s election, economists warned that his victory could herald a major stock market correction and global recession, but neither event has materialized. Instead, US stocks hit new highs in 2017 and continue to climb, the economy is humming along just fine, US household income is up for the second straight year, and unemployment is at record lows.
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