It’s About Time the Stock Market Finally Calls Trump’s Coronavirus Bluff

It’s About Time the Stock Market Finally Calls Trump’s Coronavirus Bluff 1
  • Donald Trump and his top advisors have sought to downplay the threat of the coronavirus outbreak.
  • But with the stock market plunging to three-month lows, one thing is clear. Investors are calling the president’s bluff.
  • It’s about time.

As U.S. health officials warned the American public to brace for the coronavirus pandemic to strike U.S. soil, there was a very different conversation going on at CNBC.

Larry Kudlow, Donald Trump’s top economic advisor, was poo-pooing the stock market crash that sent the Dow Jones spiraling to a three-month low.

Trump & Kudlow Tell Investors to Buy the Stock Market Dip

Larry Kudlow encouraged investors to invest in the “cheap” stock market. | Source: REUTERS / Kevin Lamarque

Kudlow hemmed and hawed about the strength of the U.S. economy and the effectiveness of the federal government’s response. Directly contradicting CDC warnings, he claimed the coronavirus was “contained” in the United States.

Then he told investors to buy the stock market dip:

The virus story is not going to last forever…To me, if you are an investor out there and you have a long-term point of view I would suggest very seriously taking a look at the market, the stock market, that is a lot cheaper than it was a week or two ago.

Kudlow is just playing the good soldier. Donald Trump’s response to the growing threat of the coronavirus outbreak has laid his priorities bare.

Source: Twitter

What troubles him most about the health crisis seems to be that it has begun to take a toll on the stock market.

Stock Market Suffers a Painful Crash

Over the past two days, the Dow Jones Industrial Average (DJIA) has crashed nearly 2,000 points to three-month lows.

The stock market recorded its worst two-day plunge since the financial crisis. | Source: Yahoo Finance

The S&P 500 is on track to record its worst two-day pullback since the financial crisis.

The yield on the benchmark 10-year Treasury note tumbled to an all-time low.

And futures market data suggest that traders don’t expect a hasty rebound.

Traders Gamble on Fed Intervention

The Fed has resisted rate cut pressures in public commentary, but traders have priced in as many as two rate cuts by July. | Source: CME

According to CME’s FedWatch tool, the market has priced in a 57.8% probability of an interest rate cut following the Federal Reserve’s April policy meeting.

That’s a massive increase from a week ago, when the odds stood at just 31.1%.

There’s a greater-than-even chance that the Fed cuts rates twice by July.

Trump Doesn’t Want You to Know That He’s Nervous About Coronavirus Too

It’s telling that President Trump is much less optimistic about the coronavirus outbreak in private, if reports can be believed.

CNN’s sources claim the president has “lashed out” against his own officials for how they have handled the crisis. His concern suggests he’s less confident in the government’s ability to contain the virus than he wants you to believe.

It’s one thing to admonish the public not to panic. It’s another to contradict the warnings of actual scientists and health officials. Especially when your end-goal seems to be nothing more than reversing a stock market crash.

But it seems that investors are finally calling his bluff.

It’s about time.

Disclaimer: This article represents the author’s opinion and should not be considered investment or trading advice from CCN.com.

This article was edited by Sam Bourgi.

About the author

E-Crypto News was developed to assist all cryptocurrency investors in developing profitable cryptocurrency portfolios through the provision of timely and much-needed information. Investments in cryptocurrency require a level of detail, sensitivity, and accuracy that isn’t required in any other market and as such, we’ve developed our databases to help fill in information gaps.

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bitcoin
Bitcoin (BTC) $ 61,933.00
ethereum
Ethereum (ETH) $ 3,739.63
binance-coin
Binance Coin (BNB) $ 477.91
tether
Tether (USDT) $ 1.00
cardano
Cardano (ADA) $ 2.13
xrp
XRP (XRP) $ 1.08
solana
Solana (SOL) $ 156.28
polkadot
Polkadot (DOT) $ 40.82
dogecoin
Dogecoin (DOGE) $ 0.253933
usd-coin
USD Coin (USDC) $ 0.998079