Mitch Labiak and Natalie Sherman
BBC News
Getty images
As a former champion runner, Richard McDonald can move quickly.
But the speed of the market falls, triggered by the radical world rates that Donald Trump announced last week, always kept it on his guard.
Previously trader for Credit Suisse, he buys and now sells private actions. During his laptop in London last week, he saw the president unveil a poster council describing the rate rates, some up to 50%, for imports from the world.
He ran to understand which companies could be the worst shots. Then he sold.
“There are billions that are deleted from the stock prices every second, so it’s really” the fastest of the fingers “,” he said. “My mind sprinkled.”
In 25 years of negotiation, he said that he had rarely experienced something like that.
Richard McDonald
The thousands of billion were erased from the value of financial markets around the world following the announcement of Trump’s “Liberation Day”.
The main action indices in the United States and the United Kingdom have experienced some of the highest declines since the start of the COVVI-19 pandemic, lowering more than 10% over three days.
Oil prices have flowed, as is the dollar.
On Wednesday, concerns spread to the bond market, while investors began to pour American public debt, generally a safe refuge for investors in times of uncertainty.
When Trump announced that he put some of the most attractive prices on a break, the actions have stopped slipping and rallying.
But market turmoil was far from over.
Trump has left a 10% tariff on imports of most countries and a 145% tariff on goods from China, the third source of American imports after the European Union and Mexico.
One day after its announcement of a break, the S&P 500 fell 3% in the early afternoon in New York.
The Dow fell by 2.5% and the Nasdaq had dropped by 4%.
At Silver Capital Management, based in St Louis, the mood, said that the director of the portfolio Jed Ellerbroek, was “still miserable”.
Some of the assets of his business, such as the health insurance giant United Healthcare, did last week, because investors are looking for companies likely to be able to resist the tariff storm.
But his third investment is Apple, which makes the majority of its iPhones and other products in China.
“Trump has induced a gigantic uncertainty in the global economy and consumers and investors and business leaders are in shock and unable to make long -term decisions,” said Ellerboek.
“We are really waiting, because we only exchange ourselves when we have high levels of conviction,” he said.
“What are we doing with Apple? I don’t know. I’m not going to change when I don’t know what the rate rate will be next week,” he said.
Faced with so many uncertainty, some investors simply leave the market, said John Canavan, principal analyst at Oxford Economics.
“What you are looking at, in general, is a frustrated, uncertain and confused market as to the place where we are going to be one day at the next,” he said. “In this environment, you tend to see some investors choose the safety of money.”
Although Trump’s price rollback was a “relief”, he said that he had not changed the situation as a whole: companies in the United States that provide parts or products are confronted with significantly higher import taxes than at the start of the year.
“The rates that remain are still high enough for them to be likely to push inflation and weigh considerably on the economy as we advance,” he said.
“We are once again exchanging on long -term broader prospects of pricing implications, which is always negative.”
