The elections of 2020 and its presidential campaign is soon going to get into its full swing, the incumbent president Donald Trump might be interested in a cautionary tale of 1929 which involved the pre-eminent economist of United States in his time Irving Fisher. Trump would then not be making the performance of the stock market as his leading and repeated bid for his reelection argument.
Two days before the 1929 stock market crash happened that is on 22nd of October in 1929, Irving Fisher had been positively bullish on the outlook of the stock markets in United States and in his opinion the fundamentals of the economy of United States had been strong and the stock market had been undervalued and the prices of stocks had reached in his assumption a permanent plateau.
For Fisher unfortunately though by the time November in 1929 ended, the prices of stocks in the United States had seen a major decline of 30%. His reputation as an economist in the coming years had been in tatters as the descent of the stock market continued for the next few years.
In 2020 after so many years, there is Donald Trump who has been telling the world how he has been making the economy of the United States great and has been blowing the trumpet on the increase of prices of stock markets by 40% in his watch and that must warrant a reelection in his mind.
At the similar stage the stock prices had risen by 50 % in the reign of Barack Obama and Bill Clinton. Trump has further required a lot of assistance from the Fed, an organization he has been extremely vocal and critical about.