“The growing stock market indicators do not indicate that the economy is in good condition.”, – WRITE: www.unian.ua
The growing stock market indicators do not indicate that the economy is in good condition.
70% of respondents believe that the Trump administration does not pay sufficient attention to price reductions / photosIn the first six months of the second presidency of Donald Trump, the stock market has grown. At the same time, ordinary Americans do not feel much optimism.
Axios writes that while investors are counting on recovery after duties, the public is concerned about economic problems, such as inflation, reminiscent that the stock market is not the whole economy.
Despite the fluctuations in April, caused by the report of duties, the S&P 500 index has increased by 7%since the beginning of the year, exceeding the historical average.
Meanwhile, according to the CBS News/YouGov survey, 70% of respondents believe that Trump’s administration does not pay sufficient attention to a decrease in prices. According to 61% of respondents, the administration pays too much attention to tariff policy, and 60% said that it was against duties.
“The economy is generally slowing down, and capital markets are calm about the idea of slowing down,” said Eric Friedman’s investment director for US Bank Asset Management.
According to him, the markets are predicted by “junction” after discussions about duties remain in the past, which means that investors are not too concerned about short -term weakening.
“There is a great difference among consumers,” Friedman said.
According to him, the high prices for shares stimulate consumer consumer costs, which is known as the effect of wealth. If the rise in costs occurs mainly at the expense of people with higher income, then it can obscure the overall picture.
Thus, if the stocks grow, it does not necessarily mean that investors believe that the economy is in excellent condition. This usually means that they believe that basic assets should cost more.
Trump’s duty for Russia is investors’ reactionUS President Donald Trump said Moscow should stop the war in Ukraine for 50 days or Washington will introduce 100% of the secondary duty against all the countries that will trade it.
Investors, in turn, do not believe that Trump will take such a step. Throwing the President of the United States between opposite statements destroys confidence in his policy.
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