The countless stock market wisdoms from Warren Buffett, super investor and third richest man in the world, run Mainly on two things: stocks are not for people who want to make quick money and the best time for stocks is buying when no one is interested in securities. Seen in this way, both share owners and those who want to be, currently prefer to keep your feet still should – because the stock exchanges in the hell is going on.
Nobody wants the Fed chief
fired After an already sustained descent to the stock exchange prices fell sharply in the United States and Japan, on Christmas eve suddenly to the Ground – only two days to obtain a daily record plus. For example, the Dow Jones, which rose by five per cent. The downward trend of the high jump did not change much – at present, they are stock prices in the United States and Japan on the same level as in the autumn of 2017, the exchanges in Frankfurt and London fell back to the autumn of 2016. In the development of, not only, but also, Donald Trump complicit.
The investors calmed down now, as US Secretary of the Treasury Steven Mnuchin had explained that no one had the intention to dismiss Jerome Powell, chief of the US Central Bank (Fed). The rumor hooked up, because Trump had been criticized for weeks via Twitter, the interest rate policy of the Central Bank’s harsh. Supposedly to Trump even asked whether it is allowed, can the Fed chief throw out. It is an example would be a loose step. Usually, the Central banks do not act only in the USA regardless of the government, Trumps incessant criticism of Powell (“clueless”, “out of control”) is considered by many investors, therefore, no concern about interference.
on Monday, the US President added: “The only Problem our economy has is the Fed. She has no feel for the markets and does not understand that trade wars are necessary,” he wrote, and tried indirectly to push the blame to the sluggish stock markets, the Central Bank in the shoes. In the process, Powell has done nothing else than to increase the interest rate slightly, a move that had been hoped for by many banks and expected.
economy seems to be
falter In the process, most experts agree that the falling prices have many reasons. In addition to trump’s trade policy, the cooling of the global economy (China, for example, reports about weak economic data), as well as many of the companies themselves. Facebook about not getting for months, its data problems. Consequence: A loss of 24 percent in the last year. Or Apple: until recently the most valuable company in the world collapsed as a result of problems with the iPhone within a few weeks to seven per cent.
U.S. President at the end of the year
Alone – how Trumps Christmas tweets rather unintentionally, its General situation reflect
the non-wool comes to the end of unrest in the White house. The dispute with the opposition Democrats over the budget and the funding of a wall along the U.S.-Mexican border to the so-called Shutdown in Washington – the government shutdown. How long the will last is unclear, but probably into next year, which is weighing on the markets.
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand the necessary Trade Wars or Distribution of Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch he can’t putt!
— Donald J. Trump (@realDonaldTrump) December 24, 2018
And then, there are those small Inattentiveness of Trumps. In view of the falling rates Steve Mnuchin had called the heads of the largest US banks, to check that they have sufficient liquidity. The answer was Yes, what Mnuchin also made public. But then the stock markets went right into a decline. Because you understood his message: the US government worries about an impending banks-rush, not infrequently, signs or triggers for a veritable economic crisis.
sources: “Onvista”, “Finanzen.net”, “broker comparison”, “Bloomberg”, “Reuters”