Forget all the reasons you have herd on TV and radio as to why the recent stock market sell off took place and set a record for the number of points lost in a single day. All one has to understand is that there are three reasons why the stock market acts as it does. (a) Manipulation, (b) five percent of the people own ninety percent of all stocks and bonds, and (c) the stock market always performs best on the democratic watch.
(a) and (b) above work together. We know the money people can affect the market because a number of them have been convicted of doing so over the years. Some have even served time in prison. (b) are also the people who have the finances to create a sell off or start a buying spree. And both can actually take place when the economy is stable. It happened in yesterdays sell off. Because when there is a seller, there has to be a buyer.
And (c) is a fact of record the stock market has its best years under democratic administrations and its worse under republican administrations. Democratic policies have a more positive influence on the stock market over the long run because economic conditions are better for the general public overall. All the stock market pundits on TV were wrong about the stock market during the Reagan and Bush 43 years and were dead wrong about the Clinton and Obama years that left Reagan and Bush in the dust. And when it is all over, they will be wrong about the Trump years.
It is short or remarkable how so many TV commentators knew so little about the stock market and the fiscal conditions of the states and federal government. Their analysis does not even come close to reality. They remind this writer of sports writers and their hype and clichés. It was a comedy to listen to the various reasons given by TV commentators to Mondays 1100 point loss. And the local New Orleans TV news channels were the worst.
The ups and downs of the stock market are nothing new and will continue. Trump has tried to take credit for the stock market advances the past year and was silent as a jail bird at yesterday's sell off. It demonstrates how this President is willing to pass fake news about the stock market to the people instead of establishing a sound economic policy. What a shame.
This commentary written by Joe Lorio
