Stock Bulls in Trump Country Are Freaking Out Their

New Post Public Reply Private Reply Replies (0) Message Board

Mar 6, 2018 at 4:30 PM 138

Quote:

Stock Bulls in Trump Country Are Freaking Out Their Brokers

By
Michelle Davis

‎March‎ ‎06‎, ‎2018‎ ‎5‎:‎00‎ ‎AM Updated on ‎March‎ ‎06‎, ‎2018‎ ‎7‎:‎32‎ ‎AM
➞
‘The market is up because of Trump. They all think it’s Trump’

➞
Enthusiasm is so strong that advisers are urging caution

https://www.bloomberg.com/news/articles/2018-...ir-brokers

As 2017’s roaring bull market gives way to a markedly choppier 2018, the buzz among Wall Street stock touts is that the best of the Trump Trade has passed. Sure, more gains could be wrung out, and probably will be, but nothing like the 30 percent burst over the past 16 months.

Don’t try to tell that to the true believers in San Angelo, Texas. Or Covington, Louisiana. Or Sioux Falls, South Dakota. They’re sure this rally has just begun, and they’re sure they know why.

“I hear it every day,” said Jimmy Freeman, a financial adviser at Edward Jones in San Angelo, a city of some 100,000 that’s just east of the booming Permian Basin shale oil fields. “The market’s going up because of Trump. They all think it’s Trump.”

Across middle America, in the towns big and small that voted overwhelmingly for Donald Trump, his most ardent, and financially comfortable, backers are opening stock-market accounts or beefing up existing ones, according to interviews with more than a dozen advisers and brokers.

They were spurred on by a stream of presidential tweets crowing about, and taking credit for, the gains throughout 2017 and they remain undaunted now as the rally sputters and the tweeting dissipates.

“It has really made a difference in attitudes,” said Jimmy Waggoner, an investment adviser with VisionPoint Advisory Group in Sioux Falls. So much so that in Covington, Rob Smith, an adviser at Edward Jones there, said he tries to tap down on the enthusiasm. “I dissuade people from thinking any specific politician or even event will have that much of a long-term positive or negative effect on markets.”

They’re not inclined to listen. To those who study market psychology, it’s no stretch that passionate belief in a president would translate into throwing money on the table. Particularly this president, with whom his admirers have a strong bond.

“There’s a feeling of identity with Trump,” said Nobel laureate Robert Shiller, an economics professor at Yale University. “The man they identify with is in power and that’s exhilarating.”

There’s no way to know exactly much more active Trump devotees have become. Stock-ownership data collected by the Federal Reserve and Internal Revenue Service don’t zero in that closely. In fact, according to the latest studies and surveys, 46 percent of Americans own no stocks at all, up from 38 percent in 2008, during the financial crisis.

Trump Bulls

Their faith in the president as a market bulwark is unshaken even after February's selloff

But from what financial advisers in conservative areas are seeing, there is a Trump-minted rush. Clients of Edward Yale’s at Concho Investment Advisors in San Angelo “are now more inclined to invest into riskier assets like the stock market,” he said, and many cite the president.

Todd Neff, for one, has put $400,000 into stocks since Trump’s election. Before, he wasn’t much of an investor, basically topping out his out his 401(k) and dabbling in shares here and there. A sheep breeder and small-business owner in San Angelo, he said he would have “dropped back big time” if Hillary Clinton had won.

Now he sees the market going up 10 percent or more this year, because the president is a businessman, true to his word about rolling back regulations and remaking the tax code. “He’s going to do what’s best for the business, which is best for the country. That means the world to me.”

The glittering rise has been irresistible to Americans of all political stripes, of course. Consumers’ confidence in the stock market soared to a record high in January before fading in February after the market slumped 8.6 percent over a span of eight days. (And markets have begun gyrating again, triggered in part by Trump’s plan to impose steel and aluminum tariffs.)

Among Trump’s fans, though, trust in the firebrand politician as a stock-market bulwark easily endured the selloff, at least in San Angelo. During other routs, Edward Jones’s Freeman said, “I had people wanting to jump out of windows. Not this time.” This time, they kept buying. “I have to temper people,” he said, without much success.

Neff, for one, is unyielding. So strong is his faith, in fact, that he can even get odd looks in the heart of Trump country when he starts talking about how much money he’s investing in stocks -- including an additional $30,000 amid the February selloff.

“People look at me like a cow looking at a new gate.” But to Neff, it’s not complicated. “The economy’s doing too good, and all the companies are making money.”

Newer

Older

Scroll down for more posts ▼

Top 10 Most Recent News Articles

Navimow Powers TOP 14 with Tech: A Winning Play

A Technological Leap for French Rugby Innovation and precision in partnerships—those words don't usually pop up together when chatting about a rugby league. But here we are, discussing the TOP 14, the elite French rugby championship, pairing up with Segway Navimow. This brand, under the umbrella of Ninebot Limited (689009.SH), is stepping into the world of sports for...

Tech Breakthroughs in Cancer and Space Energy Aired

Science and Technology at the Forefront Saturday nights usually have folks kicking back with some reality shows or maybe cheering on their favorite sports team. But this September 12, savvy viewers have a chance to dive deep into the guts of cutting-edge science and tech on Bloomberg Television. We're talking about 'Advancements with Ted Danson'—where science isn’t...

Consumer365 Highlights Happy Head's Personalized Hair Solutions

Tailored Hair Loss Solutions by Happy Head Imagine trying to fit a square peg in a round hole. That's what one-size-fits-all approaches often feel like in the world of hair loss treatments. Happy Head, recognized by Consumer365, takes that notion and turns it on its head, offering personalized minoxidil formulations for women. The key word here is personalized. More Than...

Huion Kamvas Pad 12: A Creative Power Tool

The Kamvas Pad 12 Hits the Market In a crowded tablet market that's fierce with innovation, Huion tossed their latest tool into the ring—the Kamvas Pad 12. Now, anyone who’s been watching the digital art scene won't be surprised that Huion, with its decade and a half of digital prowess, is pulling another tablet trick out of its hat. Key Features and Innovations If...

Hyosung Targets U.S. AI Power Market with Advanced SST

Hyosung's Game-Changing Move in the AI Power Sector Guess what? The AI era's heating up, and it's dragging the power sector along for a wild ride. Hyosung Chairman Hyun-Joon Cho peered into that future and decided it's all-in time for the U.S. power market. With AI and data centers cranking up power demands like never before, those rickety old wires need an upgrade fast....

Sony Expands Versatile Wireless Headphone Lineup: 2026

Renewed Focus on Sound: Sony's Latest Headphones Sony's dipping into the headphone market this time with a splash of style and sound signature updates. We've got the WH-1000XM4C, a next-gen version of the top-dog noise-cancelling cans, that are gonna catch the eye of every audiophile and traveler out there. WH-1000XM4C: The Flagship gets a Lift What they're offering is...

Nutromics Welcomes Plaxco: Strategic Tech Leap Forward

Professor Plaxco’s Dynamic Role at Nutromics Some folks start their day with breakfast and coffee, but Nutromics is grabbing headlines by introducing Professor Kevin Plaxco as the new Chief Scientific Officer. This strategic shift, made public on September 7, 2026, signals Nutromics’ ambition to amplify its DNA-based sensing footprint. As they gear up to launch their...

Nuix Leverages AI for Transformative Legal Review

Nuix Unveils AI Innovations in Legal Review Diving headfirst into the evolving world of legal technology, Nuix has just rolled out some serious upgrades to its eDiscovery toolkit. By plucking AI right out of the data science ethers, they're not just dabbling in futuristic tech—they're planting generative AI at the heart of legal review on their SaaS platform, Nuix...

Papa John's Faces Investor Lawsuit: Class Action Looms

Papa John's in Hot Water Again? Look, just when you think the pizza game is all dough and cheesy goodness, along comes a legal scuffle to toss our assumptions. Bronstein, Gewirtz & Grossman, LLC has slapped a class action lawsuit against Papa John's International, Inc. (NASDAQ: PZZA), claiming the company and some of its higher-ups haven't been playing fair with the...

XiamenAir Takes Off with Fujian-London Link

A New Dawn for Fujian Travelers Here's a nugget to chew on: XiamenAir's first-ever direct flight from Xiamen to London had its moment in the spotlight. This isn't just another intercontinental flyby—it's a game-changer for folks in Fujian looking to hop across the pond without the layover hassle. With Flight MF821 touching down in Heathrow early on September 6th, this...