Even though the economy itself is healthy, the stock market has plummeted in the past few days, as people begin to worry about inflation and raised prices Art Cashin, UBS director of floor operation in the New York Stock Exchange, weighed in on the issue. On Monday, major corporations like Dow and S&P faced all time lows since 2011, Dow trading down below 25,000 points. Regardless jobs in the United States are also secure, as unemployment rates remain relatively low. Trump’s administration displayed no concern for the stock market, simply stating that it is the “ebb and flow of our stock markets.” Both Treasury Secretary and Vice President began stressing that our focus should be direct towards “fundamentals.” Mnuchin accredited tax reform as an aid towards the strength of the fundamental economy. Trump's tax reform itself has called for increased tax cuts for major businesses, which has cause a lot of controversy. From these statements, the Administration has made it clear that their focus is directed on the long run.
What are the costs and benefits of record low stocks?
Should we be focusing on the bigger picture and the long run, or the “fundamentals,” as Trump has stated?
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