David A. Andelman, visiting scholar at the Center on National Security at Fordham Law, wrote an op-ed for CNN about the lesson President Trump can take away from the recent drop in stock market prices.
Donald Trump is suddenly learning a very hard lesson. Stock markets that go up can, quite suddenly and precipitously, go down. And then there’s the other half of that lesson. When you buy the good news, you inevitably own the bad as well.
That’s the stunning conclusion from Monday’s largest single-day drop in the history of the Dow Jones Industrial Average — 1,175 points in one day, or 1,841 points in the last two trading days. In percentage terms, that’s the biggest drop since the 2008 financial crisis.
For the major indexes, Monday’s market plunge wipes out the entire gain for this year — a gain the President pats himself on the back for almost every day. For perspective, more than a trillion dollars in total value has been wiped off the books and out of the hands of American investors, retirees and anyone with a 401(k) or IRA.