Thursday, August 17, 2017

Stocks fall as unhinged Trump finally rattles markets

The market has been incredibly resilient this year in the face of Donald Trump's rants and tweets, but today it noticed.  With the collapse of two business advisory counsels of CEO's and Trump's inability to stay on the message of his economic plans, the skepticism that he can deliver anything to investors of consequence is growing.  If there is no tax plan and no infrastructure spending plan, and with anything of consequence in healthcare already sidelined, the administration is in trouble.  Trump is more focused on trading insults with real and imagined adversaries than in governing.  His reaction to the events in Charlottesville has been disheartening even to many of his Republican supporters, and an embarrassment to this country in general.

Among stocks followed closely here, only Pepsi, Berkshire Hathaway,  Boeing, McDonalds, Proctor and Gamble, and Costco escaped today with just minor losses.  Otherwise it was a broad and significant sell-off.  Without any major economic event as an accelerant, it is expected that equities will steady tomorrow but that the Trump dump will be in place for now.  If he cannot calm the ugly Trump down, the decline could continue in a meaningful way next week.  His toxicity is spreading to the market.

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