CNN’s Fear and Greed Index took a nosedive this week. There wasn’t any particular trigger or stampede involved. I think it’s just some nervous investors heading for the exits.
Either being more cautious or cashing in make sense after such a huge gain in stocks over the last couple of years. This could be either the beginning of a stampede or just a small correction. Stay tuned. If it’s a stampede, voters might notice. I think it would be a good thing if folks realized Trump’s perpetual optimism is a scam. He promotes himself as the one and only good choice to spark the economy. The stock market is a leading indicator of confidence in the economy. This could be a leading indicator of Trump’s status as king. Expect voters to shun Trump in the midterm elections and if this is a big event, possibly to support a primary challenge if Trump is not impeached sooner than 2020.
Since Trump loves polls, expect a violent response if this gets bigger. Of course, whatever Trump does to fight gravity will increase it. His trade wars, ballooning deficit, and erratic ways all contribute to certain chaos. Trump is not a business man. He’s a con-artist. Telling USAians that the sky is not falling will convince many that it is. Telling USAians that USA can do better than 100% employment while cutting immigration will convince many that Trump is insane and heading the ship towards the rocks. Telling USAians that USA can grow more than 4% per annum while laying on tariffs will convince many that Trump is insane. Telling USAians that universal medical insurance is “socialism” will convince many that USA will continue to have the most wasteful healthcare system on the planet. Whatever he does will convince many that USA is not a good long-term investment and it’s time to cash in the chips. That’s OK for me. I’m not invested in USA and gold will probably rise in price.