President Donald Trump’s trade advisor Peter Navarro on Friday encouraged Americans to buy stocks one day after dismissing a steep market drop fueled by fears of a tariff-induced slowdown as “no big deal.”
Navarro predicted market gains will result from Trump’s proposed U.S. tax cuts, and from potential trade deals with countries seeking to avoid higher tariffs he has threatened.
“Let me just say, ninety deals in ninety days, biggest, broadest tax cut in American history should be driving the tape,” Navarro said in an interview on Fox Business Network. “That’s what’s going to be a bullish market.”
“If you’re not long, you’re going to get left behind,” he added.
Navarro’s comments echo those from Trump and other officials, who talked up the stock market in the face of high volatility and price swings over the past week.
and the money shot:
“This team is just the best in history,” Navarro said of Trump’s economic advisors. “America should trust in Trump. The market should trust in Trump and not get these weak knees, because this is going to be bullish.”
He has also repeatedly said, with great enthusiasm, that the Dow will be at 50,000 by the end of Trump’s term, and that it would represent a 5% annual return!!!
OK… Is that supposed to be impressive? The Dow was at 45,000 at the start of the year.
I bet if you take the Dow to 25,000, you can then claim that Trump will double the market in just four years!
Read it with enrichment. Stocks, the right stocks, are pieces of the productive power of the nation. BTW, the stock market is volatile, not a smooth escalator to financial heaven.
The NASDAQ is much more volatile than the S&P 500.
That’s true, but if you’re saving for retirement, it’s a 50 or 60 year project (i.e., 25 or 30 years saving for retirement and God-willing, 25-30 years spending the money in retirement.) Over that time frame, the stock market tends to be an overwhelming winner.
Also, don’t discount the advice to not put any money you plan to spend in the next 5 or 10 years in the stock market. That’s sound thinking in any season.
