Vanguard founder Jack Bogle recently stated Trump’s plan to spend $1 trillion on infrastructure would only provide short-term benefits, while doing so would be bad for the market and economy in the long term due to the amount of government funding necessary. Vanguard is a fund founded in Valley Forge with about $3.5 trillion in global assets with over 20 million investors in around 170 countries.
Bogle preaches to invest for the long term and to forget the “momentary distractions” that Trump claims at a recent news conference. He believes Trump’s vision for America, including being tougher on international trade and to invest more internally, will only be detrimental in the long term for the United States.
After Trump’s news conference on Wednesday, the late-morning trading on Thursday was under pressure due to the concerns of Trump’s policies. According to CNBC producer Matthew Belvedee, since New Years, the DOW has taken a backseat to NASDAQ which has set another record high on Wednesday with a seven-session win streak. Meanwhile the DOW has gained nearly 8.9% since Wednesday’s close and got ahead.