Second White House Stock Market Warning This Month

The White House has now made two clear stock market warnings in July. President Trump hinted to CNBC that he has wiggle room with stock market gains to take on trade war risk.

It was at the beginning of the month that US Commerce Secretary Wilbur Ross made similar warnings.

Trump told CNBC late last week, "This is the time, this is the time, you know the expression we're playing with the banks' money."

Trump knows casinos and being up on the "house's money." He expressed that the stock market being up a lot since his election win affords him some room to take on some trade war risk.

That should be taken as a clear warning of more market risking tweets and decisions coming in the future.

Wilbur Ross said earlier this month the stock market will have some "hiccups" thanks to trade and that the "level of the stock market" is not going to affect their trade policy. Trump's calls last week echo Ross's warnings.

Sure enough Trump tweeted on Friday that China and the EU are manipulating their currencies. China has been letting their currency drop which has led to global market risk and currency contagion risk in the past.

So far the stock market has taken the warnings in stride but we're keeping a close eye. For now earnings are what appears to be supporting stock markets. We are bullish on earnings.