Donald Trump Says, Stock Market Downturn Just a ‘Glitch’
Even though many of the experts, is named multiple numbers of reasons for the stock market downturn, President of U.S, Donald Trump has decided it as a simple technical glitch. President Trump has also predicted that the equity markets will recover, since the U.S is planning to negotiate the trade deals with many of the countries, including China. Although the trade woes and reciprocal tariffs with China have shown no real sign of dissipating. On 1st December 2018, despite the 90-day tariff truce which began between the U.S and China. However, many of the experts have shared their views on Twitter, amongst them Jeff Mason, Reuters Whitehouse correspondent is amongst them.
Everything’s A Glitch? Twitter Reacts,
Netizens of Twitter have also shared their views on twitter regarding Trump’s tweet, calling anything from Trump’s Twitter-happy fingers to tariffs, trade wars, and the government shutdown, “glitches.” Many of these factors have been blamed for December’s stock market slump which saw the falling at 9 percent S&P 500 and conventional markets delivering the worst performance since 1931 during December 2018. President Trump’s latest comment that has hit the media has come out of the longest cabinet meeting last day, where the president told reporters that the negotiations with China were going well. The U.S also has open trade negotiations with Canada and Mexico awaiting approval from the cabinet congress. In the last week of December 2018. Art Cashin, the veteran trader and the managing director of UBS, has blamed the president directly, as well as a lack of calm from the White House, for the stock market sell-off.
Not a Technical Glitch?
Art Cashin, especially pinpointed the U.S government’s shutdown and Trump attacks on the Federal Reserve in light of plans, so that to once again raise the interest rates in the U.S, as a reason of the most recent poor performance of the stock markets. Remaining are also blaming that rise in the interest rates themselves for deterring investors who could be seeking safer investment mechanisms, like gold or bonds. Amidst major concern, the rise in the interest rates might trigger a recession in the market. Stock markets of U.S have opened for the new year by fallen down by one percent as one of the weakest performances in continents of Asia and Europe. Also, this has fuelled a lot of concerns on the global economic slowdown but went on to recover during the day. According to the reports, it is indicated that manufacturing activity in China has contracted for the first time in 19 months.
Today Cashin said that “Everybody is terrified that this is a sign of a global slowdown. It was only eight months ago we were talking about synchronized growth and all of that is falling apart.” Adding to his statements, he said that many of the other experts are more optimistic with Phil Blancato, CEO of Ladenburg Thalmann Asset Management, by saying, “ Finally, we’re starting to see this buy-the-dip mentality creep into the market. It’s because of valuations, and it’s because the underlying data has been pretty good so far, albeit a bit softer.” The crash of 2018 or President Trump’s glitch has wiped out 76 billion dollars from the net worth of wealthiest people of America, while most of them were unlikely to agree with the statements made by the U.S President.