Normally, I stay away from politics. At the end of the day, political views very rarely align and have a habit of leading to unrest in conversations. So, I know what this post could do to this relatively new website, but I refuse to tread lightly. Don’t worry, I’m pretty sure that I’m going to upset both sides, so don’t think that I’m attacking you! iWatch Markets and the founders of the website are bipartisan. We don’t care what party is doing it, as long as they are making the right move.
President Trump Has Done Something That Few Presidents Have
Every United States President will have an affect on the markets and economy within the United States. So, if I were to tell you that President Trump will do the same, it would be no surprise. However, it generally takes years to see changes made by a United States President to have a profound or even noticeable effect on the economy and financial markets. This is where Trump has done what few have.
Political pundits thrashed Trump for saying that he was the recent for the bullish run that we’ve seen in the market and uptick that we’ve seen in the economy. However, the truth of the matter is that anticipation of his actions likely played at least a small role in the uptick that we’ve seen. However, this is where things go off of the rails for Mr. President.
We Are Just Beginning To See The Actual Results Of Trump’s Actions
Although Trump can, at least in part, be blamed for some of the uptick that we’ve seen both in the market and on the economic stage, he must also take blame for what we’re seeing now. Markets are starting to double over, global economic conditions are starting to feel real pain, and it’s all likely to fall back on the United States economy.
In fact, today, the Dow is down by more than 500 points. The move follows recent declines that we’ve seen in the market. However, today’s move was triggered by a story directly related to Trump’s economic policy changes.
It all started when Apple reduced its revenue forecasts to $84 billion for the holiday quarter, shedding more than $4 billion off of revenue expectations. Of course, this sent shockwaves through the market, not only causing a drop in the value of Apple, but companies like AMD, NVIDIA, and many others and dragging the market down as a whole.
Interestingly, Apple said that the reason for the reduced expectations had to do with dwindling demand for the iPhone in China. This, in my opinion, directly relates to moves that President Trump has made since he has been in office. Think about it, with the Trade War, Trump has been bragging about the economic pressure that he has and can continue to put on China to force the country’s leadership to bend to his will. Sure, he used other words, but that’s the message my friend.
Unfortunately, what Trump is doing is working, at least when we think about the goal of hurting China. It can be stated that Trump’s trade war has led to economic pain for China, and this economic pain likely played a major role in Apple’s ability to sell the iPhone in the region. So, it’s easy to put two and two together and say that the vast declines that we’re seeing in the market today are likely a direct result of actions made by Trump and his administration.
Going further, we are watching as oil slides. Of course, this goes back to President Trump as well. Trump wants to press Saudi Arabia and others in the OPEC oil cartel to bend to his will as well. And, it is working to an extent. With low oil prices, these regions are likely feeling pain. However, the pain that this will cause for the United States economy is just starting to be seen, and this is likely just the tip of the iceberg. With low oil prices, oil companies in the United States are starting to feel the pain, and should it continue, we’re likely to see widespread layoffs across the country.
The Bottom Line
The bottom line is that while I didn’t like it, when Trump made both lude and racist comments, I kept my mouth shut. I didn’t want to bring politics into the conversation here or anywhere that I write. However, at this point, we are far beyond a conversation of political decency. We are now in the midst of a conversation revolving around financial survival.
President Trump has been in office for only 1 year and 348 days. In this short period of time, he has managed to harm geopolitical relationships to the extent that many may be irreparable. Furthermore, his rash decision making did help to lead to gains in the market early on, but in the long term, I fear that we as Americans are going to have to bare the economic punishment for Trump’s many mistakes. At the end of the day, we didn’t have the best of options on either side of the coin, and there’s no one here to blame but the President himself. He has taken credit for the good, now it’s time to take credit for the bad. More importantly, it is up to us to put pressure on our president to take a different approach. If things keep going in the direction they are going, I fear that a recession may be the least of our worries.
Never Miss The News Again
Do you want real-time, actionable news delivered to your inbox? Join the iWatch Markets mailing list below!