For much of the Trump administrations first two years, Republican investors could take refuge in the stock market.
Sure, the administration was a mess and deeply compromised.
But markets were rising.
The economy was strong.
The corporate tax cuts and deregulation were working.
Rather than focusing on all of that noise coming out of Washington, these Republicans could confine themselves to more pleasant topics, such as the performance of their portfolios and 401(k) accounts.
More recently, however, the stock market hasnt been such a good place to hide.
Even after a year-end rally, the S&P 500 finished 2018 at 2,507 down more than 6 percent for the year and 14 percent from its high in early October, marking the S&Ps worst annual performance since 2008.
When markets are volatile, a White House should adopt the physicians credo: First, do no harm.
Instead, the Trump administration has undermined confidence in markets.
It started by waging an ill-conceived and ever-evolving trade war. It then raised doubts through its ongoing shuffling of personnel about its overall competence and ability to handle international crises.
To make matters worse, this fall President Donald Trump got into the business of Fed bashing.
Because he cant take blame for anything, Trump began lighting into Federal Reserve Chairman Jerome Powell when stocks went down or interest rates went up.
The president has even mused in recent days about firing Powell, as he has done with so many people in his administration.
That, of course, only spooked markets further. Investors see the Feds freedom to make monetary policy without political interference as one of the pillars of the American economic system.
