THE LEAD | A Tale of Two Markets

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It is the best of times, or the worst of times.

Of course in the financial markets those scenarios change daily. Sometimes hourly. Sometimes when you’re asleep or on a short break. Realize there really are three financial markets. NOT just bullish and bearish. Nope, bullish, bearish AND political.

Sadly financial markets have been politicized. It’s not enough to be just bullish or bearish anymore. Nowadays it seems a very strong political bias creeps into market moves. To be very blunt, that political bias involves a strong dislike (hate) for the current U.S. president. When the stock market goes down, the president is destroying America. When the market goes up, the “Golden Age of America” is imminent. Ironically, one group actually cheers against good news and an up market (most likely shorts). Ah well.

Getting an accurate “read” on the nation’s economy has become extremely difficult. A person might be doing fine financially but will express a “gloom and doom” outlook because of a hatred of Trump. Conversely, another person may be suffering as the result of Trump’s policies, but will express a very powerful bullish outlook because of a strong liking of the president. That’s called market psychology. Very interesting, too.

Almost as soon as Trump stepped into the White House (again) ,talk of recession, rising inflation and isolationism was covered by the media. Economists predicted that tariffs would wreak havoc on the U.S. and countries around the globe. The stock market sold off sharply and financial unrest set in. All Trump’s fault. As of today (Mon. 5/12), the market is up sharply and all looks great again. Wheeeee!

Now, as a way to demonstrate this bullish, bearish and political bias, here are two ways (from the same AI source) financial news can, and has, been reported.

Pro-Trump Coverage:

“Against a backdrop of relentless media attacks and dire economic forecasts, Trump’s policies have sparked a market surge that defies conventional logic — and his critics. Supporters see this as proof positive that his unapologetic, America-first approach is exactly what Wall Street and Main Street need. From tax cuts to trade re-negotiations, Trump’s bold moves are, in their eyes, not chaos — they’re clarity. He’s ripping the band-aid off decades of complacency and political correctness, and the market is responding with strength, not fear. For these backers, every uptick is a vindication, every rally a rebuke to the naysayers.”

Anti-Trump Coverage:

“To Trump’s critics, the current market performance is a smokescreen — a temporary high masking deep, systemic damage caused by erratic leadership and ego-driven policy-making. They argue that his trade wars, diplomatic alienation, and impulsive economic decisions have injected instability into the global financial system. Beneath the surface, they see cracks forming — driven not by fundamentals, but by a cult of personality that prioritizes headlines over long-term strategy. For these detractors, every bullish bounce is just the calm before the storm, a dangerous illusion enabled by blind political loyalty rather than responsible governance.”

Get it? With deep seeded bias and hate/love emotions hanging over every policy being considered by the White House, financial markets are difficult to “read.”

So it must be true. If you are bullish, you are pro-Trump. If you are bearish, you must be anti-Trump.

Case solved.