Monday, December 11, 2017
 
What The S&P 500 Is Telling Us Today: Trump Won’t Last

NEW YORK, NY June 2 (DPI) – Donald Trump has pulled the US out of the landmark Paris climate accords, the latest gesture of petty nationalism that, by most measures at least, should trigger varying degrees of Fear, Uncertainty and Doubt.

Instead, the bellweather of US stocks – the S&P 500, the index presenting 80% of the market capitalization of all US public companies – remains optimistic and confident, as investors continue to look past the daily political theater and minute-by-minute media noise. The index is up another 3/10s of a percent today, adding to its eye-popping +12% performance since the November election.

What do investors know that everyday people don’t? Probably little, but they are assessing events quite differently from so many Americans who are wringing their hands and who can’t escape the hypnotizing babble of cable news shows.

Investors simply don’t care about “covfefe” or Trump’s other meaningless declarations; they remain fixated instead on the growth-spurring potential of de-regulation, lower taxes and public-spending cuts, all part of the broader Republican agenda which, at the end of the day, doesn’t need or even want Trump.

Investors, too, are dismissing the moralizing that Trump’s embarrassing behavior is eroding American prestige in the world. Instead, the American stock markets are telling the world that Trump’s behavior doesn’t matter – because he is one man, and because his act won’t last.

Not only will we survive this man, the markets are telling us, but so will all the democratic institutions almost all Americans greatly value – independent courts and a free press, among others. In fact, they may even be strengthened.

 

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