WSJ: Investments Tied to Trump Falter Since His Return to the White House
BlockBeats News, December 1st, according to WSJ report, stocks and cryptocurrencies associated with U.S. President Trump are deep in the doldrums, causing significant losses to some of his most loyal supporters. The price of DJT, owned by Trump, has plummeted by 75% since Trump's inauguration. The digital "meme coins" named after Trump and First Lady Melania have fallen by 86% and 99% respectively since inauguration day. Trump family's cryptocurrency project World Liberty Financial has also dropped by about 40% since its launch in September.
Whether stocks or digital currencies directly related to the president himself or his family, they have suffered a severe setback, reflecting a widespread pullback in the entire high-valuation, high-speculation market (including Bitcoin, AI leaders like CoreWeave). The market had expected the new government to drive relaxed regulation, tax cuts, and supportive cryptocurrency policies to continue to boost related assets. However, after Trump regained power, his disruption of global trade policies has disrupted these bets, causing investors to focus on the actual performance of these companies rather than his political prospects.
For example, DJT, according to FactSet data, has a sky-high P/E ratio of 1,240 times. Trump family's crypto businesses (such as World Liberty Financial, American Bitcoin) have also been hit by the recent cryptocurrency market slump.
Not only Trump's assets, but the entire "meme" speculation frenzy is cooling down, with DJT just one of many "meme stocks" that have recently suffered heavy losses, signaling a significant cooling of market speculation. Nick Giorgi, Chief Stock Strategist at Alpine Macro, said, "This is a healthy pullback after speculative frenzy." He pointed out that indices tracking meme stocks, retail darlings, loss-making tech stocks, and momentum stocks have all plummeted significantly over the past month.
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