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Trump just told you to buy stocks now that we are in a bear market — should you listen?

Brian Sozzi
Editor-at-Large

President Donald Trump — aka the day trader in chief — has a pretty good feel for the markets.

One can make the argument a better feel than the Federal Reserve he continues to blast from the confines of the Oval Office via Twitter.

"We have companies, the greatest in the world, and they're doing really well. They have record kinds of numbers. So I think it's a tremendous opportunity to buy. Really a great opportunity to buy," Trump reportedly said to reporters at the White House on Christmas.

Trump’s “bullish” comments come on the heels of the worst Christmas Eve trading session in history. The Dow Jones Industrial plunged 653 points Monday as investors continued to dump tech stocks such as Apple on fears of a global growth slowdown and Trump continued to blast Federal Reserve officials for raising interest rates. Investors return to trading the day after Christmas with the S&P 500 and Nasdaq Composite in bear markets. The Dow is on the brink of entering one.

The million dollar question today is should you follow Trump’s advice to get into a beaten up stock market? We definitely don’t provide investing advice here at Yahoo Finance. But judging by historical tweets from Trump on the market that one could deem actionable (different than just tweeting about the markets), perhaps now isn’t a bad time to nibble. Trump’s track record on predicting the market is somewhat successful from a short-term trading perspective, nothing more.

So if active investing is your thing, Trump the broker may not be such a bad lead.

August 21, 2015

With markets in a free-fall amid Chinese stock market turbulence, Trump suggested investors should be “careful.” At the time, the Dow (his favorite measure) closed at 16,459 according to Yahoo Finance data. The Dow hit a bottom of 15,666 on Aug. 25, so Trump saved some a few more points to the downside.

The Dow then went onto close the year at 17,425.

November 17, 2017

Trump strikes a bullish tone on stocks. The Dow closes at 23,557. It then goes on its January melt-up on optimism around the Trump tax cuts.

The Dow reaches a peak of 26,616 on Jan. 26.

December 19, 2017

Trump comes out upbeat on stocks again. The Dow closes the day at 24,754. It reaches a peak on Jan. 26 of 26,616.

January 3, 2018

Trump the trader is getting a bit greedy at this point. He strikes a bullish note once more, with the Dow closing at 24,922. But then things turn south rather quickly.

After peaking on Jan. 26 at 26,616, the Dow crashes and hits a bottom of 23,860 on Feb. 8 on valuation and Fed rate hike fears.

The Dow currently stands at 21,792 despite Trump starting 2018 waxing poetic on the potential for further gains.

Brian Sozzi is an editor-at-large at Yahoo Finance. Follow him on Twitter

@BrianSozzi

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