In the middle of February, President Trump addressed an investment conference, sharing his predictions.
“The markets are about to take off,” he told the Miami audience that evening. “I believe the stock market is poised for greatness.”
Regrettably for him and investors, the timing was unfortunate. That speech on February 19 occurred at the peak of a recent market high, with the S&P 500 (^GSPC) subsequently entering a weeks-long downturn.
The downward trend has continued unabated. Markets have now entered correction territory, with prices dropping over 10% this week from the levels observed on that February evening.
This shift in market conditions has compelled Trump to quickly reassess how he discusses stocks, even as he continues to assert that the long-term benefits of his tariff policy will outweigh the current “volatility.”
Despite the market slump, Trump occasionally ventured back into his familiar role as a sort of stock commentator-in-chief.
Last Tuesday, Trump was seen with Elon Musk, purchasing a Tesla and potentially supporting the struggling stock (TSLA). He encouraged investors to “buy the dip.”
“Some people will find great opportunities by buying stocks and bonds and everything else,” he remarked, adding that “the savvy” businesspeople he knows are investing based on the positive long-term impact of his actions, as they aim to reinforce America.
During Joe Biden’s presidency, Trump’s comments on the market often shifted dramatically as he navigated the explanation of price surges under a Democratic administration that he warned would harm investors.
“If he wins,” Trump declared in 2020 while gesturing towards Biden on the debate stage, “the stock market will crash.”
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Following his victory last November, Trump reverted to a familiar pattern of crediting market gains to his influence.
On December 22, the then-president-elect visited Phoenix, claiming, “[S]ince the election, the stock market has shattered numerous records… it’s being referred to as the Trump effect because even prior to assuming office, we’re creating jobs and opportunities while restoring safety and common sense to the USA.”
He maintained this narrative for several weeks.
“I hesitate to say this because it sounds boastful, but I’ll say it anyway: the Trump effect,” he declared on the eve of his inauguration.
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Once in office, Trump minimized the initial market anxieties regarding tariffs, even pretending at one point not to follow market developments.
“How is the market performing?” he queried reporters in early February after signing a series of executive orders, remarking about recent market volatility, “I don’t pay attention to it.”
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However, the sell-off initiated on February 19 prompted Trump to deploy a variety of strategies to address the barrage of questions from reporters.
“What I need to do is strengthen the nation,” he expressed in a Fox Business interview recorded on March 7. “You can’t solely focus on the stock market.”
The following day, March 12, after his public appearance with Musk encouraging stock purchases, Trump reverted to an old narrative and attributed the decline to his predecessor.
“I believe a lot of the stock market’s decline stems from the disastrous four years we experienced [under Joe Biden],” he stated.
Read more: The latest news and updates on Trump’s tariffs
Indeed, Trump and his team have started using various euphemisms to dismiss market concerns — such as a “detox period,” “minor turbulence,” and “growing pains” — yet the core message remains that he perceives the current decline as a necessary sacrifice in pursuit of his tariff agenda.
A recent indication from Trump came Thursday when he reaffirmed his unwillingness to deviate from his market-impacting tariffs.
“We’re not going to waver,” he assured after being questioned once more about his tariff strategies and the resulting market consequences.
Ben Werschkul is the Washington correspondent for Yahoo Finance.
Every Friday, Yahoo Finance’s Rick Newman and Ben Werschkul bring you unique insights into how U.S. policies and government actions affect your financial landscape on Capitol Gains. Watch or listen to Capitol Gains on Apple Podcasts, Spotify, or your preferred podcast platform.
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