The stock market as a measure of Trump’s success

The Week  |  Joel Mathis

President Donald Trump is increasingly using the U.S. stock market as his primary metric of presidential success, despite warnings that this focus overlooks the 40 percent of Americans without market investments. This reliance on market performance has directly influenced major foreign policy decisions, including recent attempts to negotiate peace with Iran.

Historically, most administrations downplay their susceptibility to economic pressure, but foreign adversaries have recognized this vulnerability as leverage to extract diplomatic concessions. While the stock market has grown by $15 trillion during this second term, Reuters reports these gains remain concentrated among the wealthiest one percent, leaving small businesses and average consumers facing higher prices at the pump. Consequently, the Financial Times notes that bond markets are signaling deeper instability, with large, conservative investors reducing their exposure to U.S. institutional risks by shifting capital toward Canadian and European bonds.

Comment

Financial market sensitivity exposes a critical vulnerability in democratic security decision-making. Adversaries exploit this weakness through targeted gray-zone maritime disruptions. The Iranian Islamic Revolutionary Guard Corps Navy utilises asymmetric tactics in the Strait of Hormuz. These tactical disruptions trigger immediate capital flight into safer sovereign debt instruments.

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