‘The Stock Market is up massively since the Election, but is now taking a little pause - people want to see what happens with the Midterms.”
President Donald Trump on Tuesday said a downturn in U.S. equity markets that has wiped out year-to-date gains for the Dow Jones Industrial Average and the S&P 500 is just a “pause,” after a powerful rally since his surprise election in November of 2016. He offered his remarks in an early Tuesday tweet:
The Stock Market is up massively since the Election, but is now taking a little pause - people want to see what happens with the Midterms. If you want your Stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, High Taxes & Open Borders!
— Donald J. Trump (@realDonaldTrump) October 30, 2018[1]
Since the day after the 2016 presidential election, the S&P 500 has gained more than 23%, the Dow is up about 33%, while the Nasdaq has advanced nearly 36% since after the Nov. 8 election, nearly two years ago.
However, October has been particularly brutal for Wall Street investors. The Dow DJIA, +0.81%[2] is down 7.6% so far in October, which would mark its largest monthly decline since May 2010. The S&P 500 index SPX, +0.57%[3] is down 9.4% this month, which would be its worst monthly loss since February of 2009, while the he Nasdaq Composite Index is off 12.4%, which would be its largest one-month drop since October 2008.
Trump also warned that voting Democratic in midterm elections that kick off Nov. 6 would intensify the drop:
‘If you want your Stocks to go down, I strongly suggest voting Democrat. They like the Venezuela financial model, High Taxes & Open Borders!”
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References
- ^ October 30, 2018 (twitter.com)
- ^ DJIA, +0.81% (www.marketwatch.com)
- ^ SPX, +0.57% (www.marketwatch.com)
- ^ Sign up here. (www.marketwatch.com)