The Trump stock market rally: Don’t thank Trump
By Larry Light
When Donald Trump won the White House 12 months ago, the stock market took off. And the president often takes credit for that. In a recent tweet, he attributed the ongoing rally to “great confidence” in his administration’s policies.
The truth, though, is that the president — indeed, any president — has only limited powers to affect the market, which is driven more by corporate earnings and economic forces.
“In the first few months” of Mr. Trump’s presidency, said Garrett Oakley, a financial planner with online financial adviser Betterment, investors were excited about Mr. Trump’s ambitious plans for tax cuts and huge public works projects. “But that became priced in,” meaning the thrill faded after nothing happened and investors turned elsewhere for inspiration.