The Real Reason the Trump Administration Is Manipulating the Stock Market
The Trump administration has ignited a new bull market.
The S&P 500 and NASDAQ have both hit new all-time highs. You’re going to see a lot of commentators proclaiming that the rally in stocks is “fake” or “manipulated.” They’re not wrong. But they’re missing the point: policymakers HAVE to manipulate stocks in order to maintain the financial system.
Please understand, I’m not saying I like this or agree with it. I’m simply pointing out the facts.
The dirty little secret of our current financial system is that central banks CANNOT create jobs, boost incomes, or even generate economic growth. All they can do is control the price of debt/credit… which inflates asset prices (stocks/ real estate) which makes people feel wealthier, so they keep spending money.
That’s it.
Why do this? Why not stop printing money, devaluing the $USD and allow stocks to trade based on fundamentals?
Because a bull market in stocks is now a matter of national security.
Some 58% of American households have exposure to the stock market. In terms of actual wealth, 45% of household wealth is invested in stocks. Yes, nearly HALF of the wealth Americans own is tied to the stock market.
In this context alone, a major bear market/ crisis in stocks represents a matter of national security in terms of economic damage. It’s the equivalent of an economic nuclear weapon.
But wait… this relationship is even deeper than most realize.
The stock market is now in fact the economy.
We are in a “K” shaped economy in which the top 10% of incomes/ consumers accounts for nearly ALL of consumer spending/ economic growth while the bottom 90% of the incomes/ consumers are struggling with the higher costs of living due to inflation.
The top 10% of households, the people who are literally driving the economy due to their consumer spending, own over 90% of stocks. In this context, a bear market in stocks would trigger a massive decline in consumer spending. And since consumer spending accounts for 70% of GDP, this would immediately lead to a recession.
This is not hyperbole. We got a taste of this during the trade war/ tariff tantrum in March/ April 2025, when stocks declined 18% in four weeks, erasing $11 trillion in wealth. At that time, numerous companies ranging from Southwest Airlines to Chipotle to PepsiCo warned that they were seeing a pullback in consumer spending that was recessionary.
This is why policymakers, including the President and his inner circle, ALWAYS intervene to prop up the stock market. It’s why the market is manipulated both verbally and via direct infusions of newly printed money by the Fed.
You may not like it. I don’t agree with it. But it’s a fact. And as investors, our job is to make money, which means dealing with reality as opposed to fighting it.
What does this mean for the financial system going forward?
The $USD will continuously lose purchasing power. Indeed, it’s lost a THIRD of its value since the Fed first went nuclear with monetary policy in 2008.
This devaluation will force capital into risk assets like stocks, real estate, and hard assets like gold. It is not coincidence that both stocks and gold have SOARED over the same time period.
Most critically, we are now at a crucial inflection point in which gold is starting to outperform stocks. The ratio of gold to the S&P 500 has broken out of a 10 year consolidation. It is now backtesting this breakout signaling that former resistance is now support.
This is EXTREMELY bullish and suggests we are about to enter a period of higher inflation (gold usually outperforms stocks during such periods).
Smart investors are moving now to prepare for it.
On that note, we just published a Special Investment Report concerning FIVE secret investments you can use profit from the next major bull run in precious metals miners.
The report is titled Survive the Inflationary Storm. And it explains my top precious metals plays, including their names, their symbols, and the resources they own. These are HIGH OCTANE positions that rallied 75%, 140%, 150%, 180%, 280% and an incredible 574% in 2025! And I wouldn’t be surprised to see them repeat this performance in 2026.
Normally I’d charge $499 for this report as a standalone item, but in light of what is unfolding today, we are making just 100 copies available to the public.
To grab one of the last remaining copies…
Best Regards
Graham Summers
Chief Market Strategist
Phoenix Capital Research