At this moment in time Donald Trump is under extreme pressure as the coronavirus continues to drive down the US economy. Huge job losses would appear to be on the way even though many have been temporary laid-off or furloughed. However, amidst this “difficult” background Donald Trump still remains extremely positive about the US economy and the US stock market. So, would you trust Donald Trump with your investments?
Leading from the front
There is no doubt that Donald Trump leads from the front with a bombastic style that certainly grabs headlines. He does not suffer fools gladly, is not afraid to speak his mind and is not over popular in media circles. Supporters would suggest that he is “one of the people” while others would suggest he is out of his depth and was criminally slow to react to the coronavirus crisis. However, if we take a step back and look at Donald Trump’s investment career, he has proven to be successful.
Indeed, Donald Trump has risen time and time again from the depths of financial ruin. When taking on the often poisoned chalice of US president he was forced to transfer his business interests into a trust to be controlled by his family. Whether or not he has any behind-the-scenes input is debatable but he has given up an awful lot to chase his American dream.
Investors love Donald Trump
If you cast your mind back just prior to the coronavirus crisis, the US stock market was trading at record highs and the economy seemed well set for the future. It is safe to say this has all been forgotten in light of the coronavirus pandemic which, while stating the obvious, was no fault of Donald Trump. However, even in these challenging times his loyalty to US citizens is there for all to see.
His recent press conference was littered with more positive comments and forecasts for the immediate future. Indeed, he believes that the US stock market could potentially return to previous highs before the year-end. We do know that US stock markets, and in many ways the US economy, have a habit of bouncing back fairly quickly. That said, the huge impact on company balance sheets as a consequence of the coronavirus pandemic have not been quantified as yet. Surely they will hold back companies in the short term?
Political fights don’t end well
We know that Donald Trump is not afraid to speak his mind and this has placed him in a number of very difficult politically charged situations. He recently suggested that he alone had the power to lift lockdowns across all US states, superseding the power of local state governors. At a time when all parties should be working together, Donald Trump has become something of a controversial figure and one not universally liked.
Whether or not you like Donald Trump there is no denying the fact that his policies since taking up the presidential office did prompt record highs on the stock market. Given time he would likely do the same again but has he taken a step too far with his overly optimistic outlook, has he put in doubt his re-election credentials?