For those who went to bed in the wee hours of election night, when stock futures were still hurtling downward on a shock Trump victory, it might have come as a mild surprise to see the Dow opening calmly Wednesday morning and rising steadily throughout the day. Someone must have listened to Larry Kudlow and bought the dip.
It’s hard to imagine a more enthusiastic dip-buyer than Carl Icahn. In an interview with Bloomberg, Uncle Carl divulged that he made an Irish exit from Trump’s victory party in order to scoop up profits. “I was at the Trump party, so to speak, at about 11:30 quarter to twelve. When I saw that market fall apart it made no damn sense. I actually went home and I did a little – I made a purchase.”
That little purchase turned out to be a $1 billion bet on U.S. equities. And a well-timed one at that. The Dow rose more than 250 points by mid-afternoon, or 1.4 percent. That’s a sharp turnaround from the 800-point plunge Dow futures took overnight.
It’s a bit of head-scratcher that after months of warning of Brexit-style collapse after a Trump win, Wall Street has whistled a happy tune Wednesday. Icahn evidently isn’t the only one who thinks Trump – and especially his tax plans – will make stocks great again, too. “I do not think that Donald is going to be bad at all for the economy,” he said.
If you can buy into the Donald, you can buy into any old dip.