Among other doomsday predictions that would ensue from the election of Donald J. Trump as president was that the global stock market would tank — never to recover, according to some. Like the venerable (to liberals, at least) Nobel Prize-winning economist and New York Times columnist Paul Krugman. As we shared previously, Krugman went so far as to declare the following on election night:
Well, anyone who’s been remotely paying attention to the stock market knows that after election-night tumbles in futures market, the stock market has been enjoying a record ride in the past two weeks following Trump’s election. Today, the Dow Jones Industrial Average hit a new record high, and even CNN had to admit it had something to do with Trump’s election.
As CNN Money reports:
The Dow Jones Industrial Average hit a new record high Tuesday, closing above 19,000 for the first time as the stunning market rally since the election of Donald Trump continued on Wall Street.The blue chip index went as high as 19,044 in late afternoon trading and finished the day slightly below that.
The Dow, which includes 30 brand name stocks such as Coca-Cola (Tech30), Disney ( ) and General Electric ( ), is now up nearly 4% since Trump defeated Hillary Clinton to become the next president of the United States.The S&P 500 and Nasdaq are also at record highs. ), Walmart ( ), Microsoft ( ,
Of course, being CNN, they had to get in a plug for Obama in any case:
Of course, it’s not as if investors have suffered during Obama’s tenure. The Dow has nearly tripled since hitting a low of about 6,400 in March 2009 — shortly after Obama took office in the midst of the Great Recession.
The latest rally is spectacular in how the market has swung in the weeks leading to the election and after.
CNNMoney’s Fear and Greed Index, which measures seven indicators of market sentiment, is now in Greed territory and is not far from Extreme Greed levels. It was registering Fear just before the election.
That’s because investors were initially wary of Trump.
The market actually fell for nine straight days in the two weeks leading up to the election, as Trump’s campaign gained momentum due to concerns about Clinton’s emails.
Ironically enough, the market rallied sharply the Monday before Election Day after FBI Director James Comey cleared Clinton — an event that many investors interpreted as a sign that Clinton would wind up defeating Trump after all.
So what’s changed? The market now seems to think that Trump’s win, combined with Republicans retaining control of both the House of Representatives and Senate, should mean that many of Trump’s market-friendly policies will be enacted.
Market-friendly policies? Yes, sir!
So while CNN is apparently coming to grips with (this) reality, at least, how do y’all think the NYT’s Paul Krugman is doing? Curled up in a ball somewhere perhaps? If so, good!
[This article was written by Michelle Jesse, Associate Editor]