Maria Bartiromo Says It’s ‘Somewhat Dangerous’ When Trump’s Words Move the Markets

By Chris Ariens Comment

On Monday, Oct. 19, 1987 stock markets around the world crashed.

It began in Hong Kong and rippled through exchanges around the world. By the time the U.S. markets closed 30 years ago today, the Dow Jones Industrial Average dropped 508 points, or 22.6 percent — still the largest daily percentage loss ever. By comparison, the Oct. 15, 2008 loss of 733 points on the Dow was a 7.9 percent drop.

30 years after Black Monday, could a massive market correction be on the horizon?

We asked Fox Business Network host Maria Bartiromo: “There are many people who remain very bullish on stocks because the fundamental economic and earnings backdrop is positive. GDP has been improving — 3.1 percent last quarter. Earnings, while having come down from the first and second quarter heights, are still growing. And there is an anticipation that tax cuts and tax reform will boost the economy further. Valuations have moved up and there is some concern about prices getting more expensive but not enough to get investors to sell aggressively because there is confidence in the U.S. and the global economy today which is the backdrop to stock market gains.”

TVNewser: You were 20 years old and a student at NYU on the day of the ’87 crash. As a journalism and econ major, what do you remember from that day?

Bartiromo: I remember people talking about the enormity of it. People were paralyzed by a 23 percent selloff in one day. It immediately became part of my econ courses. I don’t think I fully understood exactly the impact at the time, but a few years later I was on the floor of the New York stock exchange as a new boom was beginning. The next 20 years would include an individual investor revolution, globalization, 9/11, an internet boom & bust, followed by a housing boom and bust and a global debt crisis. And yet here we are back in unchartered territory once again. Incredible resilience.

TVNewser: Do you think Pres. Trump is wise to keep talking about the rise in markets considering the historical fluctuations?

Well $5.3 trillion in market value created since the election is quite extraordinary actually. But of course nothing goes up in a straight line and if he is going to own it on the way up, he’ll have to own it on the way down too. There is no doubt though, these gains are related to his policy changes — rolling back regulations, and an anticipation of tax reform. He’s a business man, so he watches it.

TVNewser: His comments have also moved entire sectors, which is not surprising, but what do you hear from your sources about the impact that his words have on the markets?

He has moved markets before, from his comments on a strong dollar and its negative impact to his executive order on healthcare and its impact on insurance stocks to his comments on wiping away Puerto Rico debt. This is somewhat dangerous. The president’s words matter and they will move markets.

TVNewser: I imagine you’ve requested an interview with him. Do you expect a “yes” sometime soon?

I interviewed him in April and yes I do expect to do so again soon. Stay tuned.

TVNewser: You spent 20 years at CNBC and will soon mark 4 years with Fox. How much longer would you like to be anchoring a daily business news show?

As long as I can. I love what I do and have no plans to stop anytime soon. It’s been incredible.

FBN continues to lead its rival CNBC among total viewers, while CNBC continues to lead among younger viewers. On Tuesday, the day the Dow hit 23,000, FBN had a 33 percent viewer advantage over CNBC (226,000 vs. 170,000) during Business Day (9:30 a.m. – 5 p.m.). Bartiromo’s Mornings with Maria was among the show’s leading in viewers.

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