WASHINGTON, May 17, 2017 – Despite the pre-written story the so-called major media have been pitching since November 9, namely that Donald J. Trump is unqualified and unfit to be President of the United States, this week’s cascading scare headlines only tell half the story. But they are certainly scaring the stock market as evidenced by Wednesday’s trading action thus far.
The real political story – and the real scandal – is mounting evidence that the U.S. Department of Justice, along with a cadre of FBI officials and similar cadres placed in U.S. Intelligence agencies, have been working nonstop for months to undermine, destroy and eliminate Trump’s presidency ever since he won the election.
The stately rollout of anti-Trump innuendos and accusations – none of which thus far has been supported by any documentation or on-the-record statements from credible officials – suddenly detonated on the heels of James Comey’s well-deserved dismissal as the FBI’s top dog. The crescendo of pressure on the president has been well-prepared and is not about to end.
The latest hits are Trump’s alleged “giveaway” of top secret information to the Russians and his also alleged urging of Comey to go light on the accusations that ultimately caused the President’s former Director of National Security Michael Flynn to get fired – something the firmly-entrenched socialist Deep State earnestly desired.
One obvious result is the stock market selling panic that got underway Wednesday morning at Wall Street’s opening 9:30 bell. The Dow plummeted around 250 points in rather short order for a loss of nearly 1.2 percent just in the first hour of trading. That widely-followed average briefly tried to recover, but this feeble effort decisively failed.
The DJI is now down 286 points as of approximately 11 a.m. ET this morning, and currently stands at 20693.72, off now by 1.36 percent. The broader-based S&P 500 isn’t faring much better, off 30.72 at the moment for a loss of 1.26 percent, with that average currently standing at 2371.02.
The tech-heavy NASDAQ is doing even worse at the moment. The average is hovering right now at 6,063.21, off a whopping 106.04 points for a loss of 1.72 percent. The Nazz has also been unsettled by various reports appearing today that claim chip makers in particular have gotten way overbought and were begging for a sharp correction. If today’s action continues for a few more days, it will look like these prognosticators (who may be sitting on hefty short positions) are geniuses.
Bottom line: The YUGE-ly hyped anti-Trump “news” might pass like all the other anti-Trump fake news thus far. But this current mess, aided and abetted by the President’s own bull-in-a-China-shop style dismissal of the slippery Comey, has Deep State fingerprints all over it. For that reason, the fake leaks relayed to the left’s favored propaganda outlets like the New York Times and the Washington Post will probably continue indefinitely, though few if any of these salacious stories and tidbits will be directly sourced.
Such chaos at the seat of the Federal government will eventually undermine any president’s agenda or that of his party. Add to this uncertainty the fact that neither major party any longer has any intention of working for the people that elected them, and you get an overall decline in public confidence. This, in turn, is reflected in U.S. stock and bond markets which, analysts to the contrary, often trades on psychology, not balance sheets.
Up to this point, the buildup of quietly positive Congressional action along with showier Trump executive order signings has proved a remarkable tonic to companies and stocks that suffered for eight long years under a president and an administration that openly despised them. So it didn’t take much on the part of the new administration to re-ignite the long-idle growth engines of American capitalism.
But the necessary tasks of adding jobs, boosting salaries, fixing healthcare and the national infrastructure have not yet been accomplished by a long shot. To grind the animal spirits of American business to a halt right now due to the vindictive, anti-democratic political machinations of self-righteous “progressive” Deep State oligarchs would be both a national tragedy and a national disaster. But these New Feudalists don’t really care.
Indeed, the self-righteous leftist running this thinly-veiled cabal may finally be succeeding in setting up the panic situation they’ve long desired. The result may be a hard reversal of the good fortune experienced by most traders over the last several months, a decidedly bad thing for investors of all stripes.
It would be a shame if the left succeeded in this latest fake rush to judgment. But this is who they are and it’s what they do. Add the current negativity and intransigence to “Sell in May” syndrome, and we get even more reason to go light on new stock purchases right now even as we get rid of a few marginally positive or negative positions to raise cash for the better days that can still return. If and when the smoke clears from this latest fake political mess.