Bad Bad News
Bad Bad News
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The Merriam-Webster dictionary defines chaos as a state of utter confusion. What the American people are currently experiencing is unprecedented chaos. Chaos that we haven’t seen on this scale in my lifetime or my parents’ lifetime. With what seems like a never ending news cycle, it’s hard to keep up with all the developments. Many, including myself, thought that the death of Supreme Court Justice Ruth Bader Ginsburg was going to be our last surprise before the election. But 2020, like with everything else, had something else in mind. President Trump tested positive for Covid-19, then became hospitalized, and then released all within 3-4 days. Of course, we send our well wishes to the President, First Lady, and everyone who is suffering from the effects of Covid-19. The chaos of not knowing how President Trump was doing sent every media outlet into a frenzy. Twitter became the only way we could see how the President was doing. Tweets became more essential than we had seen in the past.
This all of course has big effects on the stock market. The Dow Jones closed down 375 points on Tuesday because President Trump tweeted that he didn't want to keep negotiating a stimulus package. We’ve moved so far away from looking at fundamentals and assessing asset prices that way. The words in a tweet mean more than the traditional way of valuing assets. Don’t get me wrong, the words of a president is important especially when he calls off negotiations for a stimulus package, but why did we let it get to this point?
As always we’ll start with looking at some new economic data that recently came out and make sense of that. We’ll then dive into the chaos surrounding both the stimulus and the election. Then we talk to Mr. Leyder Aiden Murillo, a financial advisor, about how people can prepare for what’s to come in the markets. We finally end as we always do with the European View and this week we look at how Europe and other countries view the US.
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