If Trump is so bad, how come equity markets are so stable?

The superb Gulzar blog has a mid-week linkfest (previous week) in which he points to this starting thing.

The Trump administration has been mostly condoned by one and all. However, one barometer proves all this wrong. This is is the equity markets which ahs emerged as one of the key benchmarks for comparing everything. Any policy or action is usually judged in terms of stock markets. If markets are fine so is the action is the general call of things.

However, this blog does not really buy this recent stock market fascination for everything as it is quite biased and could go terribly wrong as well. Markets correct and move on but leads to all kinds of problems for people who built certain expectations based on equity market reactions earlier.

But nevertheless, it is amazing to note that despite all kinds of admonitions, the volatility in equity markets is lowest in Trump’s first 6 months compared to any other President:

1. The remarkable rise and stability in the US equity markets since the election of Donald Trump and the daily roller-coaster of uncertainty flies against conventional wisdom. The graphic below captures the Trump stability:
Delivered volatility, I think means realised volatility which just sees changes in asset prices over a period. The higher the magnitude of changes , higher is the volatility as well.
Time will tell whether all this equity market prognosis was right or wrong..

2 Responses to “If Trump is so bad, how come equity markets are so stable?”

  1. Grady Says:


    Estuve leyendo tu redacción y hay cuantiosas información que no sabía que me has aclarado, esta
    espectacular.. te quería agradecer el periodo que dedicaste, con unas infinitas gracias, por aconsejar a personas como
    yo jijiji.


  2. Autumn Cote Says:

    Would it be OK if I cross-posted this article to WriterBeat.com? There is no fee; I’m simply trying to add more content diversity for our community and I thought this was well-written. I’ll be sure to give you complete credit as thez author. If “OK” please let me know via email.


Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this: