Why Trump 'Got Out' of the Stock Market

Fox Business ^ | August 02, 2016 | Julia Limitone

[expat_panama]

Republican presidential nominee Donald Trump says he’s never been a big investor, but when it comes to putting his money in U.S. stocks he told the FOX Business Network’s Stuart Varney, “I don’t like a lot of things that I see.”

“I did invest and I got out and it was actually very good timing,” he said.

Trump expanded on why he’s skeptical of investing in the markets.

“I don’t like a lot of the signs that I’m seeing...

He added: “The only reason the stock market is where it is, is because you get free money.”

When asked about how a Trump presidency would affect the stock market, the real estate tycoon said “it’s going to go great.”

“We are going to spur a lot of things...

[SueRae]

To be honest..I’ve seen enough in the stock market, too. I’ve picked the occasional winner but have seen the ravages as well. Massive short selling, a tilted press corp, etc.

I should have saved that.money and bought real estate instead...

[poconopundit]

Good one, odawg.

Which means the biggest key to employment growth is not the huge manufacturing firms, but the small ones and the many services firms.

Trump's going to even the playing field and remove the hundreds of regulations that stake the deck for the large firms who can hire lawyers to figure out how to comply.

Warren Buffet, the leading investor in Golden Sacks, is typical of the Wall Street corporatist who profits by collusion with government, less by innovation.

Buffet is supporting Hillary and Obama for a reason -- he plays the game with them and gets his special favors. The Keystone Pipeline would have damaged Buffet's railroad business big time, so he begged and bowed to Obummer the Magnificent.

Guys like Buffet have to be put down small to medium business America to flourish.

[Moonman62]

Most U.S. employment is by corporations w/ mare than 500 employees. Most U.S. private wealth is corporation ownerrship. That means if all Americans dump stocks then Americans will lose half their wealth and most of their incomes.

...

For many years, all net new jobs have come from small businesses.

Trump is right about the Federal Reserve controlling the direction of the stock market with monetary policy.

He is saying the stock market will be much healthier under his leadership, so I wouldn’t take that as a signal for everybody to sell.

[Raycpa]

Real estate investment and stock investment are two different animals.

[odawg]

“That is listed on the stock exchange?”

Yes.

“Small businesses make up: 99.7 percent of U.S. employer firms, 64 percent of net new private-sector jobs, 49.2 percent of private-sector employment, 42.9 percent of private-sector payroll, 46 percent of private-sector output, 43 percent of high-tech employment, 98 percent of firms exporting goods, and 33 percent of ...
Frequently Asked Questions about Small Business - SBA.gov”

[miss marmelstein]

Well, I’m the buy-hi, sell-low type myself. Although my retirement plans over 30 years have done fairly well. I’m sure when I finally am forced to touch them, the market will have crashed totally. Sigh...

[nathanbedford]

If a corporation is issuing stock that could mean one of several things, the Corporation needs money which it cannot borrow from a bank or other sources, the Corporation can get better terms from the market then it can get from conventional lending institutions, it believes that it can put the money it acquires to profitable use by expanding its business, it believes it can pay off conventional debt more cheaply and it is worth watering down shareholders equity to do it, it believes the price of the stock will fall and it is an opportune time to capitalize by issuing stock. By extension it could mean the Company believes that the entire market will go bear-ish and now is the time to load up on cash to see itself through hard times.

Normally the opposite considerations apply to companies buying back its own stock. Often this means that a company believes that it can increase shareholder value more by reducing the shares outstanding then it can accomplish by devoting the money to expanding the business. It usually means that the company believes that the value of the stock will go up and might also mean that the company believes that the whole market will go up.

[The_Republic_Of_Maine]

Sirius Lee (If Trump loses, America dies)

If for any reason Mr. Trump does not win, the US doesn't die, but the civil war will be like ever seen on earth before.

*

[Jack Hammer]

‘When asked about how a Trump presidency would affect the stock market, the real estate tycoon said “it’s going to go great.”’

Just one more reason that the Marxist hillary wants to win - so she can tank the economy, leading everyone to require the government teat for survival and vastly enhancing her hold on and exercise of power.

It’s Lenin’s game plan updated for the modern world.

[expat_panama]

Most U.S. employment is with companies with less than 50 employees.

That's probably true in the political universe, it's just that in the business world we're stuck dealing with other things (from Statistics of US Businesses Employment and Payroll ... - Census.gov):

[palmer]

The shills will try to claim QE ended years ago. While that is true here it is not true worldwide. All the worldwide banks are playing the same QE game just at different times. It infects markets worldwide, primarily in emerging market bubbles but the same short term speculation spills over into our market.

[Reeses]

Stock buy backs are an effort to increase share value and the price to earnings ratio.

Buy backs do not create wealth for investors but transfer money to executives. It gooses the stock price artificially so that executive stock options become worth something. If executive stock options were adjusted to account for the effect of a buy back there wouldn't be a buy back.

[expat_panama]

Trump is right about the Federal Reserve controlling the direction of the stock market with monetary policy.

Huh.  Back in '08 when TARP came on line major indexes proceeded to plunge.  Big time.  Maybe that was then and you're talking now, so if TARP's been paid off and QE's in the rear view mirror, pse tell me what stocks are going to do today given the Fed's current press releases?

[trebb]

Most U.S. employment is by corporations w/ mare than 500 employees. Most U.S. private wealth is corporation ownerrship. That means if all Americans dump stocks then Americans will lose half their wealth and most of their incomes.

You mean that the actual adjustment to reality will show that the really big money day-traders have already sucked a lot of wealth from the markets and screwed the American People (among others) daily under the Obama Admin - right?

[expat_panama]

watching average earnings for the S&P lately?

Hmmm, you're right. 

This has to mean something ::starts hedging::

[dennisw]

Is anyone thinking this through here?

Yes Trump thought it through for himself. You have permission to invest the opposite way

[GBA]

Why Trump 'Got Out' of the Stock Market

Why? Maybe it's because his main/sole focus is investing in Trump, Inc. and not stock in other people's companies?

Just a guess...

[expat_panama]

...investing in Trump, Inc. and not stock...

Maybe we want to say that there is no Trump Inc.  There once was a Trump Entertainment Resorts Inc  (TRMP), then it went private as TEMP and now it's a subsidiary of Icahn Enterprises, L.P. (IEP).

At any rate, when Trump invests in Trump, he buys shares of IEP on the open market.

[GBA]

His "investing in Trump, Inc." is my way of saying he is "investing" in himself and whatever he's interested in doing, but not in what other people are doing.

While I'll never be Warren Buffett, the latter is what I do when I buy stock in other people's companies and call myself an "investor".

I could be wrong, but that's not Trump's thing, right? My understanding is that Trump is not in the investment business.

He has other business interests where he invests his time, efforts and money.

[exit82]

Can we send a truckload of those pills to GOP Headquarters?