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I remember the press reporting the plummeting DOW and NASDAQ numbers as we prepared for the inauguration of president Obama as no big deal.
It contrasts with the reporting of the DOW and NASDAQ being in flux from the changes wrought by the tariffs being imposed on all sides.
Except the 2008 numbers WERE a big deal. Watch the movie The Big Short for a complete idiot's guide to that debacle. It's even an entertaining movie.
I think the current numbers aren't a big deal. Changes to taxes always stir up the market and it settles down once the effect of the tax changes are evident and accommodation for them is made.
I could be wrong, of course, but I think I've got the fundamentals right this time.
"The Market" considered as an organism has two brain cells trying to find each other in the dark.
ReplyDeleteBecause it's always A-Okay for the market to plummet and crash due to democratic party interference (thank you, Barney Frank) but it's always the incoming republican president's fault for a tanking economy.
ReplyDeleteSeriously, after 4 years of actual recession and almost-depression, who wouldn't expect the crashing economy to... show indications of a crashing economy.
Conversely, there are economic indicators that the crashing plummet of the last four years is rapidly being reversed. Yes, the tariffs are temporarily painful, but just the threat and the actual application of said tariffs are forcing a much better international trade situation.
The only people being hurt are day traders. Long term putting the US in a more competitive position helps the markets.
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