- Donald Trump and his top advisors have sought to downplay the threat of the coronavirus outbreak.
- But with the stock market plunging to three-month lows, one thing is clear. Investors are calling the president’s bluff.
- It’s about time.
As U.S. health officials warned the American public to brace for the coronavirus pandemic to strike U.S. soil, there was a very different conversation going on at CNBC.
Larry Kudlow, Donald Trump’s top economic advisor, was poo-pooing the stock market crash that sent the Dow Jones spiraling to a three-month low.
Trump & Kudlow Tell Investors to Buy the Stock Market Dip
Kudlow hemmed and hawed about the strength of the U.S. economy and the effectiveness of the federal government’s response. Directly contradicting CDC warnings, he claimed the coronavirus was “contained” in the United States.
Then he told investors to buy the stock market dip:
The virus story is not going to last forever…To me, if you are an investor out there and you have a long-term point of view I would suggest very seriously taking a look at the market, the stock market, that is a lot cheaper than it was a week or two ago.
Kudlow is just playing the good soldier. Donald Trump’s response to the growing threat of the coronavirus outbreak has laid his priorities bare.
What troubles him most about the health crisis seems to be that it has begun to take a toll on the stock market.
Stock Market Suffers a Painful Crash
Over the past two days, the Dow Jones Industrial Average (DJIA) has crashed nearly 2,000 points to three-month lows.
The S&P 500 is on track to record its worst two-day pullback since the financial crisis.
The yield on the benchmark 10-year Treasury note tumbled to an all-time low.
And futures market data suggest…