The 'Trump Dump' is back -- and the stocks that he targets are crashing

Contributing sentiments towards policy:

73% : As Businessweek noted, "Trump believes he understands the levers of power much more deeply now...saying, 'Now, I know everybody.
53% : As Bloomberg Businessweek recently reported, "Trump is highly attuned to his standing with America's corporate chieftains... he bristles when it's pointed out to him that no Fortune 100 CEO has publicly contributed to his campaign, according to Jeffrey Sonnenfeld in the New York Times.
51% : In the same interview, Trump also aggressively took aim at large U.S. tech companies, exacerbating a tech sell-off, with the Nasdaq 100 falling by nearly 10% in the days after, erasing over $1.7 trillion in wealth.
47% : Another study by Merrill Lynch during Trump's first term noted that days on which Trump tweeted a lot (in the 90th percentile, defined as more than 35 tweets) were associated with statistically significant negative stock market returns.
40% : At recent rallies, Trump has started attacking the record-high stock market as just making "rich people richer," reflecting a level of hardcore economic populism that makes even the conservative Wall Street Journal's Editorial Board shudder.
39% : However, Trump is likely to carry out his anti-corporate vendettas more efficiently and ruthlessly if he wins a second term.
36% : For example, consider what happened after Trump attacked Taiwan's semiconductor manufacturers, which account for ~90% of the world's production, and questioned whether the U.S. should defend Taiwan militarily in an interview with Bloomberg Businessweek.
35% : Sometimes Trump rattled the entire market with his ravings.
34% : However, what many commentators miss is not just the 40 record highs the stock market has hit under the Biden-Harris administration -- but also that while Trump does hold significant sway over pockets of the stock market, much of his impact is profoundly negative, particularly for individual companies and industries that draw his ire.
31% : "Trump has often tried to bend individual stocks and sectors to his will by vindictively singling them out.
27% : Trump crashing the stocks of companies and industries he capriciously targets is not a new phenomenon.
27% : For instance, the S&P fell 4% in two days in 2019 after Trump suddenly tweeted that he would slap tariffs on $500 billion worth of imports from China.
22% : In another case, the market lost $500 billion in value in a single day after Trump, out of nowhere, attacked Fed Chairman Jay Powell.
20% : For example, Harley-Davidson dropped nearly 10% over two days in June 2018 after Trump abruptly tweeted threats to increase taxes on the company for supposedly outsourcing (which was later shown to be untrue).
19% : For example, when Trump took offense at CNN's coverage of him, he seemingly retaliated by holding up the merger between CNN's then-parent company, Time Warner, and AT&T, for two years, hurting both badly.
10% : In any case, initial gains in these sectors in the days following Biden's debate disaster and the assassination attempt on Trump have largely been reversed over the last couple of weeks.

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