As Trump Dismisses the Stock Market, He Hurts His Voters

With recession fears growing every day and the Dow Jones Industrial Average down over 15% since he took the oath of office, President Donald Trump has shown little concern. In fact, he is on record dismissing the significance of stock markets altogether, claiming they serve only to make “rich people richer.” It’s a view that might play well with some populist crowds or even draw cheers at his rallies, but it’s terrible policy—and worse economics. If Trump continues to ignore signals from the stock markets, it’s not just investors who will pay the price. His political base will, too.

Policy first. Yes, it’s true that the wealthiest Americans hold the majority of stock market value. But it’s also true that a sizable majority of American adults–about 61% by the best recent estimates–own stock in some form, most often through retirement accounts like 401(k)s or IRAs. And for middle-income households, stock ownership is common: a little less than 65% of families earning $50,000 to$100,000 have some exposure to the markets, according to Gallup and the Federal Reserve. Even about one-third of those earning less than $40,000 own stocks in some form. These people aren’t hedge fund managers or executives for tech giants. They’re police officers, warehouse supervisors, and office managers, working Americans trying to build a nest egg. And they comprise the bulk of the electorate. 

Stock ownership is most concentrated among older, wealthier, and better-educated Americans—the very groups most likely to vote. In the 2020 presidential election (the most recent year for which we have complete data) for example, according to U.S. Census data, 81% of eligible voters in households earning more than $100,000 went to the polls, compared to just 53% among those earning less than $30,000. And nearly 90 percent of households with incomes over $100,000 own stock. Among white households, who made up 84% of Trump’s voters in 2024, more than 65% own stock. Trump’s base also includes small business owners, retirees, and midlife, mid-income professionals—many of whom feel market swings through their retirement accounts or business valuations. They’ll notice when their portfolios shrink. 

It’s also true that people who don’t invest in stocks tend to be younger, lower-income, or working part-time—and they’re less likely to vote. Among the poorest fifth of Americans, support for the Democratic party remains consistently high. As Trump’s policies impact the pocketbooks of all Americans, he cannot lose support among these non-investors because he never had much to begin with.

In fact, Trump himself once understood the value of the stock market to Americans and his political base. During his first term, he boasted about market gains—nearly 70% growth from inauguration through the time he left office despite a crash during the COVID pandemic. In April, he even celebrated the partial market rebound following a market crash triggered by his tariffs. If he claims and gets credit for good stock markets, he deserves the blame when they turn bad. He cannot blame Congress, a pandemic, or “globalists” in this case.

Stock market trends ripple across the entire economy. A weak stock market—especially when paired with unprecedented tariffs—puts pressure on the value of the U.S. dollar, which hit a three-year low in April. That means companies lay off workers and cancel expansions and imports become more expensive–further raising costs for less affluent Americans who already spend much of their income on necessities. Ouch. In other words, ignoring the market isn’t just a slap in the face to retirees watching their 401(k)s shrink. It’s a real threat to anyone who depends on a steady job, has started their own small business, or may struggle to buy groceries.

The reality is that millions of middle-class Americans–many of whom make up his base–are counting on the market for retirement security and financial well-being. Stock markets matter to the economy and Trump’s own coalition that he depends on to pass and support his policy agenda. If Trump keeps ignoring the stock market, he may sabotage this agenda and hurt the very people who sent him to the White House.