General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsLooks like stock market is completely ignoring any of the Trade War Risks
The markets also ignored the risks from the risky loans and deregulation that permitted banks to engage in hedge fund trading with derivatives,
That permitted banks to engage in hedge fund trading with derivatives the risks poised by the deregulations that very almost resulted into another Great Depression
For the most part I see the same rationalizations and brush off.
During the Reagan era I remember them spewing the bullshit that deficiets do not matter, and the booming economy that will result from tax cuts make it a non-issue.
Now they are saying that the so-called tax cuts will protect us from any Trade War Risks
Different tune, same song
no_hypocrisy
(46,080 posts)still_one
(92,130 posts)factors in, but in general I believe this is just typical Wall Street BS to pad over the precarious situation we are in.
This tactic is not new. They did this in the runup to the Great Depression, and even after the 1929 crash they continued to push the "nothing to be concerned" theme, until they couldn't anymore
brooklynite
(94,500 posts)The markets have been bouncing up and down like crazy over the past three months.
still_one
(92,130 posts)was initiated under Reagan, but has gotten far worse with the high frequency trading, dark pools, etc.
Market has been essentially neutral in my view, which to me indicates they are not particularly concerned about potential trade wars. In fact I think they are more concerned about rising interest rates, and listening to the majority of so-called financial analysts, I still seem them pushing the theme that this is just a negotiating tactic, "nothing to worry about"
That is my take
brooklynite
(94,500 posts)Look at the markets during the Obama Administration, and your see a more or less consistent gain; it's only this year that the major swings have been continual.
still_one
(92,130 posts)nolabels
(13,133 posts)Same crap that happened in 07-08
nycbos
(6,034 posts)You can't look at day to day performance because no one can market time.
still_one
(92,130 posts)market has essentially been neutral, which means to me they don't consider it a big risk.
JDC
(10,125 posts)FBaggins
(26,727 posts)Expected Q2 GDP around 4% with insanely low unemployment yet tame inflation with ISM figures around 60? Even oil prices appear to be near a sweet spot where they aren't high enough to seriously dent the transportation sector nor household budgets, yet they're unexpectedly high enough for oil companies to actually churn out significant profits. One would expect a dramatically higher stock market... yet something has restrained the markets over the last six months. What reason is there to believe that risks from trade issues aren't a big part of that?