THIRTY PIECES OF SILVERAugust 31, 2018

On August 22, the S&P 500 Index set a record for stock market bull runs (an aggregate annual increase of at least 20%) by reaching 3,453 days. The streak began on March 9, 2009 when the Great Recession pummeled the economy; the S&P closed at 676. On August 23, President Trump told Fox & Friendsthat if he were impeached, the stock market would crash. Really?

Let me run some numbers. This past Wednesday (August 29), the S&P set another new record at 2,914. That’s a 27% increase over Trump’s 18 months in office—roughly 18% annually. That’s good. But over the seven months since last January 26 when the S&P 500 set a previous high, the S&P was up only 44 points—little more than 0.1%.

Now, go back to November 1, 2016 with the presidential election a week off and fewer than three months remaining in Barack Obama’s second term. The S&P 500 closed at 2,165—a 320% increase over the 92 months since the March 2009 low. From that date during the Obama presidency—remember, he inherited a financial collapse from George W. Bush—the S&P climbed nearly 40% a year.

Yes, the bull market continued under Trump. But it began under Obama. Did Obama have a better grip on the economy? Not necessarily. A president can affect the economy through good or bad judgement, but most economists warn that the economy has a life of its own. Raising or lowering taxes, the Fed changing interest rates, running a budget surplus or deficit, regulating or deregulating the financial industry may—or may not—produce corresponding market gains or losses.

Economic trends, domestic politics and world affairs also produce unexpected results. For example, markets often drop during the threat of war then rise when war begins. Investors prefer certainty to uncertainty, knowing when to choose between plan A or plan B. Also, investors—particularly on Main Street—often act irrationally, chasing bull markets and driving up stocks until they’re overvalued and collapse.

If you own stocks in some form—about half of Americans do—and follow them daily, your financial hopes and dreams experience regulars ups and downs. When a president “delivers” positive market returns in the present, you might fear rocking the boat, ignoring historical fact that long-term, markets rise. So here’s a question:

If Congress finds wrongdoing on the part of Donald Trump before or after the Mueller commission releases its report, would you oppose impeachment? The hit to the market—if there is one—likely will be short-term. Remember the dot.com boom? The dot.com bust followed. Then a recovery. Then another plunge. Then another record recovery.

Despite market history, some Americans may heed Trump’s warning. They’ll betray the nation for thirty pieces of silver. Or, depending on their portfolios, a great deal more. All to prop up a facade of short-term stability. That would make a mockery of American ideals.

This nation doesn’t need Donald Trump to thrive. Yes, Americans put him in the White House—albeit with fewer citizen votes than Hillary Clinton thanks to the Electoral College. Still, the United States deserves better. We’re hardly a perfect nation. But we’re far too good to be misled by an egotist who professes faith in Jesus while worshipping the dollar.

I have not computed percentage increases to account for compounding, but the absolute numbers are—pardon the word—facts. This post was vetted by my financial advisor, Ira Fateman of SAS Financial Advisors. Any errors, however, are mine alone.

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