President Donald Trump blamed ‘rich guys’ playing the market for the up and down swings among stocks
President Donald Trump pointed the finger at wealthy investors for supposedly manipulating the stock market by making strong statements.
In a tweet Wednesday, Trump said to be wary of wealthy investors using their platform to comment negatively about stocks, when they tend to profit from betting against the market.
“When the so-called ‘rich guys’ speak negatively about the market, you must always remember that some are betting big against it, and make a lot of money if it goes down,” Trump tweeted. “Then they go positive, get big publicity, and make it going up. They get you both ways. Barely legal?”
The tweet also followed CNBC’s Jim Cramer’s criticism of billionaires for betting against the stock market.
‘I’ve had it with these billionaires,” Cramer said Wednesday on CNBC’s “Squawk on the Street.”
Druckenmiller minced no words in his thoughts on the economy during a speech to the Economic Club of New York on Tuesday evening.
‘The risk-reward for equity is maybe as bad as I’ve seen it in my career,’ Druckenmiller said, according to CNBC. ‘The wild card here is the Fed can always step up their (asset) purchases.’
‘The consensus out there seems to be: ‘Don’t worry, the Fed has your back,’ he noted. ‘There’s only one problem with that: our analysis says it’s not true.’
Druckenmiller also said a v-shaped recover, which is a sharp decline followed by a sharp recovery – which the Trump administration is pushing for – is a ‘fantasy.’
‘I pray I’m wrong on this, but I just think that the V-out is a fantasy,’ he said, according to Bloomberg News.
Another big investor who has been outspoken about the market is Bill Ackman. The activist manager from Pershing Square made an appearance on CNBC on March 18, warning “hell is coming” and imploring the White House to shut down the country for a month.
Ackman turned a net profit of more than $2 billion a week following his TV interview.
He then used those proceeds to wager that existing Pershing bets, including hotel operator Hilton Worldwide, would rebound. He called the idea that he tried to drive down the market through his comments “absurd.”
The stock market has mostly recovered from its historic lows in March, when the coronavirus began to make waves across the United States, shuttering businesses and causing unemployment numbers to rise.
Goldman Sachs, however, warned on Wednesday that dark economic days are ahead.