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Larry Summers: Trump 'Crazy' for Boasting About Stock Market Gains

Larry Summers: Trump 'Crazy' for Boasting About Stock Market Gains
Kaspars Grinvalds | Dreamstime

By    |   Friday, 10 November 2017 09:58 AM

Larry Summers, former Treasury secretary and Harvard University president emeritus, claims President Donald Trump is "crazy" for taking credit for stock market gains.

“It’s crazy for a president to wrap himself in the stock market,” Summers recently told the Politico Money podcast.

“The market goes up and the market goes down, and if you take credit when the market goes up, I don’t see how you can avoid taking responsibility when the market goes down,” said Summers, the 71st United States Secretary of the Treasury from July 1999 until January 2001.

Summers said he avoided stock market commentary during the Clinton and Obama administrations, the Hill.com explained.

“In both administrations I’ve been part of, we talked about how we focused on the fundamentals and if the fundamentals stayed strong over time, then markets would take care of themselves,” said Summers, who was the Chief Economist at the World Bank from 1991 to 1993.

Despite not having a single major legislative victory and with prospects for a government shutdown in December looming, stocks have not looked back in the Trump era, Reuters reported.

The S&P 500 is up 21.1 percent since the 2016 election, while the Dow has gained 28.5 percent in that period and the Nasdaq Composite is up 30.3 percent.

Banks and technology have been the best performers over the past year, with telecommunication services the weakest performer.

The Dow has closed at a record high more than 70 times since election day 2016 and the S&P 500 has closed at a record on 52 days in 2017 -- the fifth-most in any year, but it could challenge the 59 record closes in 1928 for third place or the 62 in 1964 for second, according to S&P Dow Jones Indices data.

The year with the most S&P record closing highs is 1995 with 77. There were 53 in 2014.

Economic growth across the globe, alongside stimulative monetary policy from the world's largest central banks, have been behind the market's rally.

The expectation of pro-growth and business-friendly policies from the Trump administration as well as bets on deregulation, gave investors further reasons to invest in stocks.

For his part, Trump sent tweets Tuesday morning pointing to the "great confidence" in his administration’s efforts, noting the record level the stock market hit on Monday.

He added that the administration is at work on cutting taxes.

U.S. equities hit records highs on Monday as Wall Street noted news of corporate dealmaking, according to CNBC.

The president is on a tour of Asia, including stops in Japan and South Korea.

(Newsmax wire services contributed to this report).

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Former Treasury Secretary Larry Summers claims President Donald Trump is "crazy" for taking credit for stock market gains.
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2017-58-10
Friday, 10 November 2017 09:58 AM
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