The legendary Investor Warren Buffett said yesterday of his equally legendary investor day and known to have never in his career such a dramatic market collapse as seen now. In the White house with several groups in the Trump camp, and arguing in the meanwhile, the best response to the pandemic, and tried to talk the stock market nicely. The attempt seems to have failed. The stock market gains since the Trump choice almost melt away completely. The Crash anticipates with a probability of 80 percent, a recession and makes a re-election of the President more uncertain than ever.
The massive sale from Monday and Thursday, yesterday came to a standstill. Nevertheless, Economists and analysts expect predominantly with further corrections and a months-long nervousness. Uncertainty is poison to financial markets. Since the choice of Trump, the investor had ignored all the negative news and pushed the stock prices of record record. Trump basked and said that the height of flight on the stock exchange was due to him, which is why he gained re-election. The bill seemed to be working; until a few weeks ago in any case. 67 percent of the voters declared in mid-February, they felt, with a view on the economy is good or very good. A Gallup survey confirmed the upward trend. Trump reached 46 percent, a maximum positive value. And Wall Street used to bet on his re-election, around two-thirds of financial professionals expected a second term for the President.
The trust was not justified
Against the oil war between Russia and Saudi Arabia as well as the Corona-pandemic Trump could do nothing. However, his response to the greatest health crisis in generations revealed with the last of his clarity, that the almost blind trust of the investors was not justified. The government had to almost prepare for two months of the crisis, and in addition to a disease plan a stimulus package for the economy. Instead of acting, it was nonsense spread. Economic adviser Larry Kudrow, a notorious smooth-talker, said two weeks ago, the Corona disease in the United States was under control and the shares are now cheap. Who believed him and bought, with a loss of 30 percent. Trump did not hold back. "The stock market starts very well look", he tweeted in February. Who is naive enough to believe him, that man looks very bad today.
Trump predicted a "big leap"
The Corona-crisis on crack, the conflicts within the government again. On the one side the son of Jared Kushner, and daughter Ivanka, son-in-law. They pushed against the advice of the Minister of Finance, Steven Mnuchin, the Chairman of the television appearance on Thursday evening, although until recently it was not clear what should say Trump. According to confused he was. He spoke of a (non-planned) trade stop with Europe, provoked a shares fall in Asia, before his advisers had to correct it in unprecedented ways. But since the damage was already done. The flight ban from Europe was the idea of Kushner. It was agreed neither with the EU, yet it made sense. Why large Kingdom, Japan or the Middle East, has been excluded, remains a mystery. This is 80 per cent likely in the coming months of a recession. The approval of the voters for Trump is not at all surprising to return again to 42 percent. This does not seem to shake the Trump Clan still. Minister of Finance, Mnuchin said yesterday, a quick end to the crisis and spoke of "a great investment opportunity". Also, Trump brushed aside the concerns. "At the right time, it will be a very big leap to the top". The question is when. Before or after the election in November.
Created: 13.03.2020, 19:47 PMUpdated Date: 13 March 2020, 23:02