‘Since the beginning of the year, the Dow Jones Industrial Average has lost about 10 percent of its value as has the S&P 500. The Trump administration’s tariffs have introduced a large amount of uncertainty into the global economy. The stock market woes come despite signs that the general economy is still doing well. Trump decided not to spare any country –including U.S. allies — from tariffs’. That was taken from a news website, not this morning, but in October 2018. Last time he waited a couple of years, and most of his ire was, if you remember, directed at China. This time, with more confidence, he hasn’t hung around; and it’s what happens next, the consequences, which are yet to play out. Last time, he changed his mind in several directions pretty quickly, and markets bounced back, so that particular crash looks little more than a blip on most fund performance charts. But then on a more pessimistic view, and not to worry you too much, US tariffs in the 1940s led pretty directly to Pearl Harbour. My own investment glass-view may currently be half-empty, but I think we’ll be seeing it top-up, particularly the US bit, sooner rather than later. So, for now, nil desperandum.
“Trade war: Stock markets rally as Trump rows back on Fed and China threats”
Yet another reminder, should one be needed, of how quickly things can and will change. A nod and a wink in the right direction from himself and/ or an underling can provide the solace the money men crave and turn a plummet into, if not a soar at this stage, then certainly a bounce.
