It's largely the Fed, but also the administration tackling the screw ups of the past like trade etc. You really should stick to your crazy global warming theories.
Almost every single market crash has had an underlying cause. The early 2000 plunge was a result of an over inflated tech market coming home to roost. The 2008 dip was due to the subprime lending greed that put millions of people in unsustainable loans. For almost every single significant plunge there were underlying factors.
What are the underlying factors that are fueling these massive sell offs under the Trump administration? According to you guys the underpinnings of our economy is great. And although the numbers aren’t historic highs like Trump leads you to believe, they are solid. The GDP is good. Unemployment is low.
So what’s fueling the downturn? Is it rising rates from the Feds like you indicate? Well, if you look at historical returns under rising federal rates you will see that excuse is baseless. Since 1971 the S&P has risen over 20% in rising interest rate environments. The individual sectors of technology, industrials, and energy all has positive growth during rising interest rates. The real estate sector fared the worst due to the leveraged nature of the industry. Historical evidence shows that as long as the rates are raised in a moderate way, there is no evidence for your assertion that the rising fed rates are the issue.
Now...you mentioned fixing the trade abuses of the past as though to insinuate that the trade and tariff impacts on the market are a result of past abuses. But the problem there isn’t the correction of trade issues, but the uncertainty created by a president who acts erratically and puts us on the brink of a full blown trade war with China. This would be catastrophic.
The problem we have is we have a president who fails to understand the basics of our economy. This is an actual quote from our president...
“I’ve borrowed knowing that you can pay back with discounts,” he
told CNBC. “I would borrow knowing that if the economy crashed, you could make a deal.”
So we have this guy who thinks the answer is to increase the national debt and when it comes crashing down just negotiate a discount. And why not? It was an underpinning strategy of his real estate ventures. He would borrow money at exorbitant rates (on the Taj Mahal project he said banks would be in line to loan him money-they weren’t) and when it all came tumbling down he’d seek to refinance the deal at discounted rates. The only problem with that is it leaves a stream of unpaid contractors, construction workers, and thousands of other ancillary players in the construction of his projects, many which went bankrupt due to not getting paid. But Trump uses their misery as a business tactic to build these exorbitant projects in hopes to just stiff everybody and the renegotiate at lower rates.
Nope...this stock market fluctuation we’re seeing is as a result of people who are jittery. In the absence of any underlying economic drivers causing the fluctuations, these ups and downs are being driven by the fear caused by uncertainty, be it trade or government stability (is Trump going to survive). I suggest you stick to what you do best...hit and run name calling without any engagement or debate of the facts. Honestly, if I were playing your hand that would be my strategy as well.