One day the president strikes a negative tone on trade with China via Twitter (see Aug. 23), the stock market goes in the toilet. The next day — or hour — the president hints on Twitter that trade negotiations with China are going well and a deal may not be that far off. Stocks rip higher, until the next concerning China trade tweet.
A vicious circle indeed that creates headaches for those looking to plan for their financial future by building up a 401(k). The endless presidential tweets and subsequent market volatility is also eroding confidence in stocks as an asset class, says numerous pros Yahoo Finance has chatted up.