Opinion: President Donald Trump Is Overlooking the Biggest Risk to the Stock Market (Hint: It's Not a Recession)
Heading into his second presidential term, many investors assumed that President Donald Trump's bark would be a lot worse than his bite on trade and other policies, primarily because the stock market was doing well and investors assumed that Trump wouldn't want to see the market get hurt on his watch. Those assumptions have now been put to the test as Trump has gone forward with certain tariffs, and the market has sold off sharply.Since Feb. 18, the Nasdaq Composite Index has entered correction territory, down more than 11%. Now, it's still quite early in Trump's second term and he seems to change his stance on tariffs by the day, but I think the president is overlooking the biggest risk to the stock market -- and I'm not talking about a recession, although that's a risk too.During a recent television interview, Trump put investors on edge when he did not rule out a recession and said he expected the U.S. economy to see "a period of transition." However, Trump may not be overly concerned about a recession, at least when it comes to the stock market.Continue reading
Heading into his second presidential term, many investors assumed that President Donald Trump's bark would be a lot worse than his bite on trade and other policies, primarily because the stock market was doing well and investors assumed that Trump wouldn't want to see the market get hurt on his watch. Those assumptions have now been put to the test as Trump has gone forward with certain tariffs, and the market has sold off sharply.
Since Feb. 18, the Nasdaq Composite Index has entered correction territory, down more than 11%. Now, it's still quite early in Trump's second term and he seems to change his stance on tariffs by the day, but I think the president is overlooking the biggest risk to the stock market -- and I'm not talking about a recession, although that's a risk too.
During a recent television interview, Trump put investors on edge when he did not rule out a recession and said he expected the U.S. economy to see "a period of transition." However, Trump may not be overly concerned about a recession, at least when it comes to the stock market.
