From the time he first stepped into office, President Trump has been pointing to the strong stock market rally as proof of his economic success.
Despite the recent stock market plunge, one that saw the Dow Jones decline nearly 2,000 points in just two days, the Trump’s rally, believe it or not, remains intact.
January 26 marked the Dow’s high at 26,616.71, a level from which it had declines by approximately 2,300 points through Monday’s close of 24,345.75.
For the “Trump Trade” to be completely erased, the Dow would have to decline by an additional 6,013 points to settle at 18,332.74—the level at which the Dow closed on Election Day, November 8, 2016.
Take a look at the image above–today’s chart of the Dow Jones Industrial Index:
- The red line marks the lows during the November 2016 election.
- The blue box illustrates the distance that the Dow must cover in order to erase the current rally for which Trump takes credit.
There is still a long way to go, indicating that the Trump rally is still in a positive uptrend.
Despite the extreme volatility that markets have been undergoing in the last few days, Trump’s focus is on the country’s “long-term economic fundamentals, which remain exceptionally strong.”
Some experts agree with this view. But others, like billionaire investor Carl Icahn, have a more ominous outlook.
The risk of loss in the trading of stocks, options, futures, foreign exchanges, foreign equities, and bonds can be substantial and is not suitable for all investors. Trading on margin or the use of leverage is not suitable for all investors and losses exceeding your initial deposit is possible. Supporting documentation is available upon request. Trading futures, options on futures, and foreign exchanges involves substantial risk of loss and is not suitable for all investors. Carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources and only risk capital should be used. Opinions, market data, and recommendations are subject to change at any time. The lower the margin used the higher the leverage and therefore increases your risk. Past performance is not necessarily indicative of future results.