The Dow has performed well during Donald Trump’s tenure, but whether it outweighs voter perceptions of the damage from COVID-19 is unclear.
THROUGHOUT HIS presidency, Donald Trump has consistently relied on one measure to gauge his performance: the health of the economy and, more narrowly, the stock market.
And it has worked. Until COVID-19 struck earlier this year, the economy performed well with businesses sanctioning reduced regulations, employment near historic levels and low interest rates encouraging people to buy houses and cars. The economy fell into a deep downturn following the nationwide shutdowns that began in March in response to the pandemic but is recovering, and the stock market continues to soar.
Just how much Trump idolizes the market can be seen in a couple of tweets in February. On the 19th, he tweeted “Highest Stock Market in History, By Far” before doubling down five days later as the first inklings of the enormity of the global threat from COVID-19 became apparent. On Feb. 24, he tweeted that “The Coronavirus is very much under control in the USA. We are in contact with everyone and all relevant countries. CDC & World Health have been working hard and very smart. Stock Market starting to look very good to me!” It proved to be a great market signal. But only if you were taking the other side of the trade, as stocks went on a volatile ride that ultimately took them into bear territory. Continue reading.