I was amazed this morning when I heard the CBS business reporter explain why stock futures crashed election night when it became apparent that Trump would win but recovered and soared to new highs once the market opened in the morning. According to the reporter, it was because Trump's victory speech was more moderate than expected. That's idiotic. It's ridiculous. The futures went down because there was uncertainty when Trump moved to the front and some traders decided to sell in fear of the unknown. Trading in the middle of the night is very thin, so the sales made the market move by a lot. That led a bunch of computers programmed to act when there are big moves to join in the selling. Then the circuit breakers kicked in when the market dropped too much. By the morning, when people rather than computers were in charge, the crazy selling was forgotten and the market rose because Trump promotes policies that will help grow the economy. The speech had nothing to do with it.
But there's a more important point than the fantasy views of this individual: CBS puts this guy on the air to explain the economy and the stock markets. He should understand what actually happened. It's not all that difficult. Instead, he chose to ascribe a phony political reason for the move, a reason that doesn't even make sense. Does anyone really believe that people who were stridently anti-Trump suddenly changed their view because he gave a short victory speech? No one is really that dumb.
But there's a more important point than the fantasy views of this individual: CBS puts this guy on the air to explain the economy and the stock markets. He should understand what actually happened. It's not all that difficult. Instead, he chose to ascribe a phony political reason for the move, a reason that doesn't even make sense. Does anyone really believe that people who were stridently anti-Trump suddenly changed their view because he gave a short victory speech? No one is really that dumb.
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