The Dow crossed 25,000 for the first time in its history during trading on Jan. 4 - the latest in a string of record setting gains beginning in 2017. The past year defied many predictions from liberal media personalities. CNN’s highest “Crystal Ball” predictions for 2017 for example barely peaked above 22,000. in reality, the Dow closed at 24,719 on Dec. 29, and set a first-time record of gaining 5,000 points in one year.
CNN’s predictions were wildly downbeat. Commentators like liberal Mel Robbins and right-leaning Tara Setmayer, claimed the Dow would fall more than 4,000 points, ending 2017 in the 15,000s range. Instead, it closed 2017 nearly 5,000 points higher than it closed 2016, then hit 25,000 on Jan. 4, 2018, according to The Chicago Tribune.
CNN liberal Opinion Contributor Raul Reyes said “Donald Trump’s unpredictability will keep growth in check despite his pro-business policies. Look for the Dow to stay static around 19,000” in 2017.
Others were more optimistic, but still fell wildly short. CNN Commentator Lanhee Chen speculated the Dow would hit “22,100. Think it will be another strong year for markets, as the Fed acts predictably and investors look forward to President Donald Trump's pro-growth policies.”
CNN legal analyst Paul Callan, who leans right, predicted “The Dow will hit 22,000 as lower taxes and fewer government regulations stimulate a growing and vibrant US economy. Sadly, air quality diminishes as fossil fuel use skyrockets with the acquiescence of the EPA." Callan was the only one to correctly predict Trump's win in CNN's 2016 Crystal Ball.
CNN wasn’t the only media outlet to miss the mark on 2017 predictions, however.
“Investors expecting the Dow Jones Industrial Average to top 20,000 shortly could still be in for a long wait,” Wall Street Journal US Bonds and FX Editor Aaron Kuriloff predicted on Dec. 23. He did not however clarify exactly how long a “long wait” would be.
The Economist warned investors on Dec. 14 to temper their excitement, saying “In the past, the markets have sometimes taken a pause for breath after reaching Dow milestones.” The Economist article closed by arguing that despite “the perceived pro-business policies of Republicans, the American market has performed much better under Democrat presidents.”
The day after Trump’s election, New York Times columnist Paul Krugman predicted the markets would “never” recover. He also said the “disaster for America and the world has so many aspects that the economic ramifications are way down my list of things to fear.”
On Jan. 1, 2018, Krugman referenced his Times panic, saying “I gave in temporarily to a temptation I warn others about: I let my political feelings distort my economic judgment.” Krugman then claimed his prediction had been off because “in normal times the president has very little influence on macroeconomic developments.”
In other words, the Dow boom and other 2017 economic growth was not linked to Trump.
This story was updated to include the Dow breaking 25,000 during trading on Jan. 4.
