Financial expert Jim Cramer analyzes Trump’s surprising U -turn in customs policy – and explains why many investors have massively calculated themselves.
• Trump rows back on tariffs
• Portia markets react with a course jump
• Jim Cramer says: Many investors were wrong
Donald Trump’s surprising, U.S. Customs Policy has caused significant price expenses on the stock exchanges. While many market participants expected a further escalating trade conflict, especially with China, the US President surprised with preliminary agreements. CNBC stock exchange expert Jim Cramer not only sees it a political move, but also a cause of the latest market movements – with clear consequences for investors.
Jim Cramer about customs policy: “Trump two became Trump again”
“Whether you like it or not: President Trump two turned into President Trump one, and those who sat down to destroy the stock market – well, they made a huge mistake,” commented Cramer in his CNBC broadcast Mad Money. What is meant is Donald Trump’s return to a more economic -friendly attitude that could be observed in his first term. His initial strategy of enforcing harder tariffs had initially caused nervousness on the market and led to investors being pessimistic, sold stocks or bet on falling courses.
Surprising U -turn: stock exchanges with clear relaxation
But the opposite came in: Trump surprisingly steered and announced that it would suspend new punitive tariffs. This relaxed the situation in the markets, many share prices quickly attracted. According to Cramer, investors who had previously relied on an escalation were on the wrong side – they “made a huge mistake” because they misjudged the political risk and missed the recreation rally.
“The fear of an outdated inflation has taken a back seat,” continued Cramer. Without massive tariffs, the US Federal Reserve can think more realistically about interest rate cuts – a clear impulse for the markets.
However, overall, Cramer also evaluates the market situation positively and in his program, in addition to relaxation in the trade conflict, called other reasons for the latest relaxation: a solid quarterly report season and a low share offer due to fewer. This combination ensures a shortage of offer on the market – with increasing demand.
Trump’s change of course: practical change of heart?
Why Trump suddenly changed the course remains unclear. However, Cramer suspects that there may have been a “practical aspect”. A new economic downturn from tariffs is difficult to combat with monetary political loosening in view of the inflation -promoting effect – maybe Trump had recognized that. The prospect of a lack of interest rate reductions in an economic environment slowed down by punitive tariffs would have both economically and politically disadvantages.
Jim Cramer adds up: Donald Trump as a stock market trigger
Cramer summarizes: “In retrospect, Trump has hit the low point on April 9 with his post on Truth – ‘This is a great time to buy’ because he unfortunately created the low point itself. […] He created it by bringing the ball into play at the worst time for the bears. ”
For investors, once again: political statements and decisions – especially from influential personalities like Donald Trump – can significantly move the markets at short notice. Uncertainties can arise just as quickly as they disappear again. It remains to be seen how the situation on the stock markets develops.
Editor finance.net
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