Why I believe that President Trump has the Dow exactly where he wants it.

I think we can all agree that the Presidency of Trump has caused chaos in the financial markets. Ok, well, more confusion than usual. Every time we think we have found a period of stability and volatility dies down, we get a tweet:

Around this article, we have some of the many musings of the President, and often they lead to catastrophic consequences in the markets.

However, I believe that the Dow Strategy for the President is highly sophisticated. The issue dominating at the moment is obviously that of the US-China Trade War (and to a lesser extent, Fed rate cuts) and Trump keeps making suggestions that he is happy to delay endlessly.

Now, we are of course about to enter into a Presidential election campaign, and Trump will, of course, need some policy achievements to boast of.

 It is currently my belief that Trump will resolve the China issue around the end of this year when the campaign really starts to fire up. This will lead to a surge in the Dow (especially when coupled with Federal Reserve Rate cuts - of which the market currently expects 3 (which is ridiculous in my opinion given the continuing strength of the US economy)) and would consequently cause the President to boast of the all-time-highs, which would appear in the market.

When we look back at the Trump Presidency thus far, we see that the tax cut package was used to stimulate the economy, and simultaneously, the tariffs were increased upon goods from around the world. If Trump can resolve this issue, then not only will the pressure on the consumer decrease from the duties, but also the pressure from inflation will reduce. Trump will subsequently boast of low inflation, high growth, and high business confidence, while simultaneously criticising the Democrats for the do-nothing Congress.


 It does seem that if this is true, the President could be a very high I.Q. individual.

However, perhaps I am reading too deeply into the intelligence of the President. Maybe, he just likes to cause chaos.