At the time of the executive order, dark clouds were already building for equities. The S&P 500 was round 4270, 10% down year to date. By the time of the update in September, it had fallen almost another 10%,and tech company layoffs were starting to populate headlines. Understandably, with investors hurting, the government had to seem tough on risky, largely unregulated assets that had caused deep losses. In other words, the markets needed a “bad guy” to distract from what was shaping up to be a bleak scenario in all asset groups.
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