Hedge fund giant Dan Loeb has a clear message for President Donald Trump: You need the stock market to "Make America Great Again."
In a note sent to clients on Wednesday, the head of Third Point said: "For the new President, it will be tough to #MAGA if the stock market is faring poorly. This is not a simple task. Some aspects of tax reform, namely [a border adjusted tax], have the potential to create some volatility in earnings for large importers of goods into the U.S."
Equities have fared extremely well since Trump's election win. Since Nov. 8. The Dow Jones industrial average, the S&P 500 and Nasdaq composite have risen 8.5 percent, 6.54 percent and 7.24 percent, respectively. The three major indexes, however, were on track for weekly losses after a botched roll-out of a new immigration policy that barred entry to citizens from seven Muslim-majority countries, even obstructing people who had green cards.
Dow, S&P and Nasdaq since Nov.8Source: FactSet