Opinion | Market Madness in the Pandemic – The New York Times:
But the Trump team sees stock prices as the ultimate measure of policy success. Back in 2007 — on the eve of the Great Recession — Larry Kudlow, who is now Trump’s top economist, declared that things were going great, because the market was up, and stock prices are “the best barometer of the health, wealth and security of a nation.”
So the Trumpists took the rising market as validation for everything they were doing — their push for early reopening even though the coronavirus was by no means contained, their opposition to further relief for unemployed workers. In other words, the irrational exuberance of the retail bros may have enabled the irresponsibility of an administration that didn’t want to deal with reality in the first place.
And while falling stocks may provoke a reconsideration, a lot of damage has already been done.
There are no economic indicators that point to a better future when earnings and revenue are higher than now for many years to come.
The upside is minuscule to the downside risk. June 15, 2020. I hope I did the right thing to move to all fixed interest and no stocks starting this month. I was 30% stocks this year which was a big help after the huge drop. But the debt paying for this market run up is going to have an impact on the dollar especially with the leadership incompetency the US has today.
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