This article covers President Trump's stock market tweet from this morning and offers a counterargument to the Washington Post claims that the stock market's performance is unrelated to Trump and Washington.
Schiffer's article appears to come in response to President Trump's tweet early this morning. In his tweet, the President pointed out the strong performance in the stock market since his election.
Stock Market could hit all-time high (again) 22,000 today. Was 18,000 only 6 months ago on Election Day. Mainstream media seldom mentions!
— Donald J. Trump (@realDonaldTrump) August 1, 2017
Validity of Trump's Stock Market Tweet
Later in the article, Schiffer cites an S&P index analyst to support his insinuation the stock market's rise was coincidental with Trump's election.
However, the same S&P index analyst (Silverblatt) clearly recognizes the correlation between market returns and the presidential election. In a tweet back in June, he notes the S&P 500's (IndexCBOE:SPX) remarkable 7-month performance since Trump's election.
— Howard Silverblatt (@hsilverb) June 8, 2017
Consumer Confidence Index
Of course, Alex Schiffer omitted the primary reason why fundamentals are doing so well from his Washington Post article. When the American consumer is optimistic about the future, the U.S. economy and its companies perform well. According to the Consumer Confidence Survey and Advisor Perspectives, consumer sentiment is at its highest point in well over a decade. Consumer sentiment is not an abstraction, it is shaped by what people see and hear on a day-to-day basis.
Any technician analyzing this chart would identify late 2016 as the time the index broke through its resistance level.
The stock market may not pay attention to Washington, but average Americans do. What average Americans see, hear, and ultimately, believe, is reflected in the consumer confidence index. And, the consumer confidence index is a proxy for the velocity of money in the economy. When the CCI is strong, companies experience growth in their fundamentals. The stock market prices in earnings growth. Therefore, the Dow approaching 22,000 and the strong performance in the rest of the market is still attributable to Washington.
With this in mind, Trump's stock market tweet appears completely legitimate. Moreover, the Washington Post continues to relentlessly weave bias into its articles.