Both domestic and global stock markets have surged following Donald Trump’s 2016 election victory, yet CNN Money digital correspondent Paul La Monica spent Monday morning arguing that that’s actually a bad thing.
On Thursday, the Dow Jones Industrial Average rallied to an intraday high of 18,873.6 — and it currently sits 1,000 points above the market open the morning of the election — yet La Monica argues the market’s historic high is really a sign that people are underestimating just how much of a racist “unpredictable” Trump is and overestimating “how much Trump will actually be able to accomplish” in office. (RELATED: Stock Markets Rally For Sixth Consecutive Day Following Trump’s Election Win)
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La Monica stated that Trump remains “highly unpredictable,” but instead of citing any economic policy flip-flops Trump might have made in the past, he looked to Twitter to make his point.
“Just this past weekend, Trump vowed in a ’60 Minutes’ interview that he would not use Twitter as much as he did while campaigning,” La Monica wrote. “But [he] wound up launching a series of tweets attacking The New York Times for its coverage of him,” which, as any economist worth their salt will tell you, is the best indicator for predicting the financial climate under a new administration.
La Monica quoted a few other “market strategists” seeking to make the “well, we haven’t invented time travel yet, so there’s no way to know how Trump’s policies will influence the economy” argument.
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“It is worth asking whether investors are, yet again, underestimating uncertainty,” noted JPMorgan Funds’ David Kelly.
“There remains a great deal of uncertainty over what type of president Trump will actually be,” added Morgan Stanley’s Andrew Sheets.
For the record, The Wall Street Journal published a study on Monday in which the majority of 57 surveyed economists predicted the U.S. economy would expand by more than two percent in each of Trump’s first two years in office. (RELATED: Economists Weigh In On A Trump Presidency)
You can read La Monica’s ridiculous speculation, in its entirety, over at CNN Money.
