Money makes people talk. When Donald Trump talks about money, especially the stock market, everyone from Wall Street suits to people checking their 401ks on their lunch break stops to listen. Some people think his words are gospel. Others think they’re just noise. Honestly, the truth is usually somewhere in the middle, buried under a mountain of tweets, rally speeches, and Truth Social posts.
If you’ve been following the news lately, you’ve probably seen the headlines. He’s got a quote for every occasion. If the market is up, it’s because investors love him. If it’s down, it’s because someone else—usually his political rivals—messed up. It’s a pattern we’ve seen for years, but in 2026, the stakes feel a lot higher.
That Famous Trump Quote on Stock Market Gains
You know the one. He’s said it a hundred different ways. Basically, the idea is that the stock market only goes up because people expect him to be in charge. Back in early 2024, he posted on Truth Social: "THIS IS THE TRUMP STOCK MARKET BECAUSE MY POLLS AGAINST BIDEN ARE SO GOOD THAT INVESTORS ARE PROJECTING THAT I WILL WIN."
It’s a bold claim. Economists like to argue about this. Some say he’s right—that the "Trump Trade" is a real thing where investors bet on deregulation and tax cuts. Others, like the folks over at J.P. Morgan Global Research, point out that markets are way more complicated than just one guy's poll numbers.
Why Markets React to the Rhetoric
Why do people care so much? Well, because the market hates not knowing what's next. Trump is many things, but he isn’t predictable. When he says something like "Tariffs are the greatest thing ever invented," the market tends to flinch. We saw this in April 2025 during what he called "Liberation Day." He announced a bunch of new tariffs, and the Dow dropped nearly 700 points almost immediately.
But then, a week later, he said "BE COOL! Everything is going to work out well," and things started to bounce back. It’s a rollercoaster. If you’re trying to day-trade based on these quotes, you’re probably going to have a bad time.
The Reality of the "Trump Trade" in 2026
So, where are we now? It’s January 2026, and the honeymoon phase of the second term is sort of hitting a wall. Historically, the second year of a presidency is actually the weakest for stocks. Yale Hirsch, the guy who started the Stock Trader’s Almanac, called this the Presidential Election Cycle Theory.
Usually, the first year is great because everyone is excited. The second year? That's when the "real work" starts and things get messy. Bank of America analysts have been warning people that 2026 might be a bit of a slog.
- Tax Cuts: The extension of the 2017 tax cuts has kept corporate earnings high.
- Deregulation: Banks and small businesses are loving the lack of red tape.
- Tariffs: This is the big scary monster under the bed. They might bring jobs back, but they also make stuff more expensive.
The $DJT Factor
We can’t talk about a Trump quote on stock market trends without mentioning his own company, Trump Media & Technology Group (DJT). This stock is basically a meme on steroids. It doesn't move based on earnings or revenue—it barely has any revenue, honestly. It moves based on how people feel about Trump.
Just last month, the stock jumped because they announced a merger with a fusion power company called TAE Technologies. Does a social media company know how to run a nuclear reactor? Who knows. But the stock went up anyway because he talked it up. It’s the ultimate example of sentiment over substance.
What Investors Often Get Wrong
Most people think a president has a "magic lever" in the Oval Office that makes the S&P 500 go up or down. They don’t. The Fed (led by Jerome Powell) has way more power over your portfolio than the White House does.
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When Trump says the market will crash if he loses, or boom if he wins, he’s playing a character. He’s a salesman. And he’s good at it. But if you look at the actual data, the market has trended upward under almost every president for the last century, regardless of their party.
The danger isn't the quote itself; it's the reaction to it. If you panic-sell because of a tweet, you’re the one losing out. The big institutional players—the Vanguards and BlackRocks of the world—usually just ignore the noise and wait for the actual policy to hit the books.
How to Handle the Volatility
If you’re worried about how these quotes are going to affect your savings, here’s the deal. Stop watching the minute-by-minute fluctuations.
- Look at the sectors, not the person. Defense stocks and energy companies usually do well under this administration. Tech is a bit more of a gamble because of the China ties.
- Watch the Fed. If inflation stays high because of tariffs, the Fed won't cut rates. That matters way more than any rally speech.
- Diversify. Don't put all your money into "Trump stocks" or "AI darlings."
Actionable Insights for Your Portfolio
Don't let the headlines scare you. If you want to navigate the market during this era, you have to be a bit more clinical about it.
First, check your exposure to companies heavily dependent on Chinese imports. If the tariff talk turns into a full-blown trade war (again), those are the stocks that will take the biggest hit. Second, keep an eye on interest rates. The "higher for longer" narrative is still very much alive in 2026.
Finally, remember that the stock market is not the economy. Just because the Dow is hitting a record high doesn't mean everything is perfect, and just because it's dipping doesn't mean the world is ending. Stay disciplined, keep your eyes on your long-term goals, and maybe turn off the news notifications for a while.