President Trump often takes credit for a rising stock market, but will he shoulder the blame when it takes a dive?
The Dow Jones industrial average hit its first real rough patch during the past two trading sessions on what had been a smooth and steep climb through the first year of Trump’s administration. Monday the Dow shed 1,175 points, its largest point drop in history, wiping all of 2018’s gains.
The president has not hesitated to imply his policies are driving the bull market and the growing economy. In his State of the Union address last week, Trump touted Wall Street’s success early in his speech.
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“The stock market has smashed one record after another, gaining $8 trillion in value,” the president proudly stated. “That is great news for Americans’ 401k, retirement, pension, and college savings accounts.”
The economic data has been impressive. Since Trump was elected on Nov. 8, 2016, to its peak on Jan. 26, 2018, the Dow Jones industrial average gained a remarkable 45%.
But traditionally, presidents have avoided patting themselves on the back for Wall Street’s highs, because they don’t wish to be anchored down by its lows.
As Axel Merk, president of Merk Investments, said, “Let Trump take credit, but he’ll also own it should the market ever tank.”
Here’s a sampling of times Trump took credit for the market’s rise and the economy’s success.
Our view: State of the Trump economy: It’s complicated
Other views: ‘Trumponomics’ deserves to get the credit
Feb. 5, 2018:
The Dow’s plunge didn’t stop Trump from lauding the economy Monday, although the tweet he sent did not mention the stock market.
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Jan. 24. 2018:
“Our economy is now booming and with all I am doing, will only get better,” Trump tweeted.
Jan. 23, 2018:
“You’re seeing what’s happening with the stock market. People are appreciating what we’re doing,” Trump said during an announcement of tariffs on imported solar products and washing machines.
Jan. 20, 2018:
Trump cited the “record stock market” as one of the many ways there has been “unprecedented success” for America since his election.
Jan. 16, 2018:
“The stock market is way up again today and we’re setting a record literally all the time,” Trump said. He added that if Hillary Clinton had won the 2016 election, “the market would have gone down 50% from where it was.”
Jan. 14, 2018:
Trump sent a tweet quoting Fox News host Stuart Varney who said “President Trump is not getting the credit he deserves for the economy,” including the “most explosive Stock Market rally that we’ve seen in modern times.”
Jan. 5, 2018:
“Dow goes from 18,589 on November 9, 2016, to 25,075 today, for a new all-time Record,” Trump tweeted. “Jumped 1000 points in last 5 weeks, Record fastest 1000 point move in history. This is all about the Make America Great Again agenda! Jobs, Jobs, Jobs. Six trillion dollars in value created!”
Jan. 4, 2018:
In a reference to former president Barack Obama, Trump rhetorically wondered how the news media would have reacted if “‘O’ was president and had these numbers.” It would have been the “biggest story on Earth!” he concluded.
That tweet came just hours after another declaring, in all caps, “MAKING AMERICA GREAT AGAIN!” above a Fox Business Network graphic of the Dow’s recent milestones.
Dec. 31, 2017:
Trump tweeted that stocks would be 50% lower if American had elected Hillary Clinton rather than himself.
Dec. 4, 2017:
“The stock market I think is going to have a very big day based on the massive tax cuts that we’re very much in the process of getting approved,” Trump said.
Nov. 7, 2017:
“Stock market hit yet another all-time record high yesterday,” Trump tweeted. “There is great confidence in the moves that my Administration is making.”
Aug. 3, 2017:
“Business is looking better than ever with business enthusiasm at record levels. Stock market at an all-time high,” Trump tweeted. “That doesn’t just happen!”
July 15, 2017:
Implying the stock market hinges on his own personal political fortunes, Trump tweeted, “Stock market hit another all-time high yesterday — despite Russia hoax story.”
Blamed past dives on Obama
Trump was also quick to blame Obama for the market’s dips under his presidency (although notably, he did not credit his predecessor with its rises).
“The stock market and US dollar are both plunging today,” Trump tweeted on Nov. 7, 2012. “Welcome to @BarackObama’s second term.”
Overall, the Dow rose 149% during Obama’s presidency.
And on Aug. 16, 2011, Trump said, “Amazing — Obama speaks, market goes DOWN — Trump tells CNBC he’s buying stock — market goes up.”