I opened the terminal in the pre-market to see Nvidia (NVDA) under $100 and I knew today was not going to be a good day. Then the President of the United States complained on his incel social network about Jerome Powell. As a result the market overall went for another dive for a couple of reasons:
- Wall St. likes this Chairman of the Federal Reserve, quite a bit.
- The tantrum from the White House targeted at the world's central bank raises concerns about independence of the Federal Reserve.
- There is still no sensible US economic policy.
If the independence of the Federal Reserve were to be put into question, a commentor asked "would it make the US un-investable?"
Yes.
Predictability is important and this White House has no ability to act in a rational or predictable manner. There's a 90 day tariff reprieve? But then what? Is this White House going to try to start a war with Denmark over Greenland? Are they going to try to seize the Panama Canal? The list of wild and irrational policy decisions by the Executive leads to a total war on stability in all parts of the geopolitical and economic sphere.
I don't think Trump's policies will US un-investable as a future state. I believe we are already there..
The capital flows will continue towards Europe and Asia, this damage will take years to repair.
Trust is hard earned, but easily lost.
Trades
Holding
- AMD
- DDOG
- IBKR
- SHOP