Copyright Benzinga
Investor and entrepreneur Anthony Pompliano says President Donald Trump's promise of a $2,000 “tariff dividend” to U.S. citizens has reignited optimism across markets, even if the proposal never materializes. The ‘Trump Put’ Is Here In his newsletter on Monday, Pompliano said that the bears had been in “control of financial markets over the last few days,” pointing to the “sea of flashing red numbers.” He said this while noting that the S&P 500, tracked by SPDR S&P 500 ETF Trust (NYSE:SPY), was down 2.5%, followed by the Nasdaq, tracked by the Invesco QQQ Trust (NASDAQ: QQQ), down 4% and Bitcoin (CRYPTO: BTC), down 5% over the past week. See Also: Dow Jones, Nasdaq 100 Futures Rise On Government Reopening Hopes, Trump’s $2,000 Dividend Proposal According to Pompliano, this changed following Trump’s post on Truth Social over the weekend, promising $2,000 in tariff dividends for all eligible Americans. Pompliano dubbed the move the return of the “Trump Put,” referring to Trump’s repeated use of well-timed comments or announcements to spark market rebounds. “It only took this one social media post to completely change the direction of travel for asset prices,” Pompliano said, highlighting several similar moments earlier this year, when Trump said “THIS IS A GREAT TIME TO BUY!!!” in a Truth Social post, leading to a rebound in the markets from their post “Liberation Day” lows. Pompliano said, “I am not the smartest guy in the world, but I know not to fade the Trump Put,” noting that “the bull market is back on again.” He, however, concluded by questioning whether Trump’s proposed stimulus package was “a good idea for the long-term health of the US economy.” Trump’s Tariff Dividends Slammed By Experts Trump has floated the idea of rebate checks funded by the new tariff revenues several times this year, referring to it as “a dividend to the people of America.” The move has been met with strong criticism from leading experts, with economist Peter Schiff saying that it would “defeat the very purpose of the tariffs.” Schiff added that “consumers will use the extra income to buy more expensive imports, despite the tariffs,” which he said would “increase our trade deficit,” in a post on X. Entrepreneur and investor Kevin O’Leary similarly slammed Trump’s proposal as a “quick band-aid” in a tough economy. He warned that such policy decisions risk pushing inflation even higher, adding that “inflation is the silent tax that punishes every American, especially the ones who can least afford it.” Read More: Trump May Have Promised Tariff Dividend Of $2,000 To Each American, But Crypto Bettors Doubt It’ll Happen This Year Photo Courtesy: IAB Studio from Shutterstock
