President Donald Trump pointed the finger at wealthy investors who allegedly manipulated the stock market with loud statements.
Trump tweeted Wednesday that he is wary of wealthy investors using their position to spread negative commentary on stocks when they tend to profit by betting against the market..
«When the so-called «rich guys» talk negatively about the market, you should always remember that some people bet big against it and make a lot of money if it crashes», – wrote Donald Trump. «Then they respond positively, get a lot of publicity, and do it to make the market go up. They have you both ways. It’s hardly legal?
While Trump did not specify who he was referring to, his comments followed those of the billionaire hedge fund manager. Stanley Druckenmiller Tuesday night that the stock market is historically overvalued.
«The capital risk reward is probably as bad as I’ve ever experienced it in my entire career.», – said Druckenmiller to the Economic Club of New York. «The unknown variable here is that the Fed can always step up its purchases (of assets)».
Druckenmiller, chairman and CEO of the Duquesne Family Office, also said he felt the market was overreacting to news of advances in antiviral drugs such as Gilead’s remdesivir..
The stock market bounced back sharply from its March lows as investors began to hope more for a post-frost economic recovery. After falling in the fastest bear market in the last two months, the S index&The P 500 bounced more than 30% off its bottom and is now 13% below its all-time high since February.
Another major investor who spoke frankly about the market was Bill Ackman. A CEO of Pershing Square Capital Management, speaking on CNBC on March 18, warned that «hell is coming», and begged the White House to close the country for a month.
Akman made over $ 2 billion in net income within a week of his televised interview. He then used the proceeds to make a bet that the fund’s current investment in assets, including shares in the hotel operator Hilton Worldwide, would rebound. He named «absurd» speculation that he was trying to manipulate stock market prices through his comments.
Jim Cramer, presenter «Crazy money» (Mad money) on CNBC, shares similar sentiments with Trump, criticizing Ackman for betting against the market while publicly stating the coming stock apocalypse.