20% of US firms are being squeezed by interest rates, another $200bn worth of tariffs, CitiBank’s ‘global economic surprise index’, Manufacturers in Europe hit new lows, Michael Roberts, South Korea also appears to be slowing down, The European and Asian stock markets, the Trump tax cuts, The US stock market
The US stock market turned volatile this week and has now erased all the gains made up to now in 2018 in just a week or so. So much for Trump’s boast that things for rich investors have never been better. The fall in the US market has been matched by similar drops in the European and Asian stock markets. The all-world index has had its worst performance since the Euro debt crisis of 2012.
Now this fall could just be what market traders call a ‘correction’ and not a full ‘bear market’, when the prices of shares enter a long and deep decline. But it could be that investors are beginning to fear that the boost to profits and sales that the Trump tax cuts generated is soon to be over, while interest rates (the cost of borrowing to invest or buy back shares to boost prices) are rising…
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