Trump has the stock market confused — but investors don't need to be

Salon - Mar 28th, 2025
Open on Salon

The stock market, often perceived as a gamble, is generally considered a stable long-term investment vehicle, especially for buy-and-hold strategies used by entities like pension funds and mutual funds. However, under Donald Trump’s influence, characterized by impulsive actions and unpredictable policies on tariffs, immigration, tax cuts, and more, the market faces increased volatility. Experts suggest that while Trump's approach might initially cause panic, investors would benefit from maintaining a calm, long-term perspective rather than making hasty decisions.

Trump’s penchant for generating uncertainty often disrupts market consistency, prompting investors to differentiate between 'signal' and 'noise.' With rapid policy changes, such as fluctuating tariffs, many investors are urged to avoid overreacting to temporary market fluctuations. Financial advisors recommend sticking to existing investment strategies and focusing on 'time in the market.' While some sectors like financials might benefit from Trump’s policies, the unpredictable nature of his decisions requires careful consideration before making portfolio adjustments.

Story submitted by Fairstory

RATING

6.8
Fair Story
Consider it well-founded

The article provides a timely and relevant analysis of the impact of Trump's policies on the stock market, offering valuable insights for investors. It scores well in terms of clarity and public interest, effectively communicating complex financial concepts in an accessible manner. However, it could improve in areas such as source quality and transparency by incorporating a broader range of expert opinions and providing more detailed explanations for its claims. While the focus on uncertainty and volatility is well-supported, the article would benefit from a more comprehensive exploration of alternative perspectives and additional data to enhance its credibility and impact. Overall, the story offers a balanced and engaging discussion, but there is room for improvement in terms of source diversity and methodological transparency.

RATING DETAILS

8
Accuracy

The article presents a generally accurate portrayal of the stock market's historical performance, particularly the claim that the S&P 500 has returned roughly 10% annually over the long term. This aligns with historical data and expert analyses. The discussion on Trump's policies affecting market volatility is also consistent with known market reactions to his tariff policies and impulsive announcements. However, the article could benefit from more precise data or sources to back its claims about sector-specific impacts and the effectiveness of different investment strategies. While the overall narrative is truthful, the lack of detailed source citations for certain claims slightly detracts from its precision.

7
Balance

The article provides a balanced view of investment strategies, considering both buy-and-hold and active trading approaches. It acknowledges the potential volatility introduced by Trump's policies while also suggesting a steady long-term investment strategy. However, the piece predominantly focuses on the uncertainty created by Trump's actions without equally exploring other significant market influences. While it includes expert opinions from figures like Mark Malek, it could have incorporated more diverse viewpoints, particularly those supporting active trading or alternative strategies, to present a more comprehensive picture.

8
Clarity

The article is well-structured, with a logical flow that guides readers through the analysis of Trump's impact on the stock market. The language is clear and accessible, making complex financial concepts understandable to a general audience. The use of direct quotes from experts adds clarity and authority to the narrative. However, the article could improve by providing more context for less familiar terms or concepts, ensuring that all readers can fully grasp the nuances of the discussion.

6
Source quality

The article cites Mark Malek and Chester Spatt, both credible sources in the investment field. However, it lacks a broader range of sources, which could enhance its credibility. The story would benefit from additional expert opinions, data from financial institutions, or references to studies that support its claims. The reliance on a limited number of voices may affect the perceived impartiality and depth of the analysis, as it does not fully explore potential conflicts of interest or alternative perspectives.

5
Transparency

While the article provides some context for its claims, such as the historical performance of the S&P 500 and the impact of Trump's policies, it lacks transparency in terms of methodology and source attribution. The basis for certain statements, like sector-specific impacts and investment strategy effectiveness, is not clearly explained. The article could improve by disclosing the sources of its data and providing more detailed explanations of how conclusions were reached. This would help readers better understand the basis of the claims and assess their reliability.

Sources

  1. https://news.ucr.edu/articles/2025/03/24/economist-assesses-tariff-impacts-stock-market-trade
  2. https://www.breaktheweb.co
  3. https://www.cbsnews.com/news/today-stock-market-down-news-trump-tariffs-3-21-2025/
  4. https://acecomments.mu.nu/?post=390325%3Futm_source%3Dpolitipage
  5. https://www.usbank.com/investing/financial-perspectives/market-news/stock-market-under-trump.html