After a 10 percent launch of the S&P 500 upon processing news of a 'pause' in tariffs for the world, the stock market is still in disarray. Why? What to make of a 'pause'? For starters, if confidence was the motive after the announcement, then the Trump Administration failed. Why? Read on for thoughts and considerations.
Consumer confidence has weakened with the tariff announcements added to the mountain of layoffs that the current administration has carried out quickly. Isolating the United States from the world alliances has not been a positive catalyst for the market either. Where do we go from here?
Consider: Why did Apple charter airplanes to fly to China and collect as many iPhones as possible in the last 48 hours?
Consumers and citizens should be wary when a huge company such as Apple carries out a stunt like that. Watching the economy is not just for economists. We must open our eyes and watch to vote confidently in our government. Apple is chartering jets to collect smartphones before 140% tariffs are implemented in China, so it should raise a large red warning sign.
How Does Money Impact The Bond Market?
Money flows into China to be invested back into America. How does that happen? Take an umbrella purchased on Amazon for $9.99 with free shipping. That $9.99 goes to China. Then China invests that $9.99 into purchasing U.S. 10-Year Treasury Notes. What?
Yes. That's why yesterday, President Trump watched the Bond market get destroyed and caved in about implementing tariffs on the world (except China).
So, when you hear someone say that the President does not respond to the stock market, that is bull crap. Further, the fact that today, the market sold off further should raise signs of investor uncertainty exists. The United States (and world) need market stabilization to trade and predict properly on their short and longterm investments. Stay tuned.
