Daily Management Review

Cashin On The Image of Trump Administration Fuelling The Investors’ Fear


08/19/2017


The false rumour of Cohn’s exit couldn’t alone shake the stock exchanges, thinks Cashin.



The veteran of Wall Street, Art Cashin, talking to CNBC, said that the rumour of the Chief Economic Advisor of President Trump, Gary Cohn, leaving his post, is not solely responsible for the Thursday’s drop of stock prices.
 
The doubts that hovered around the “Trump administration’s image” for its ability on enacting on “its agenda” brought down Dow Jones industrial by almost 1.2 %, while the 500 Index of S&P dove down by 1.5% and the “Nasqad composite” fell by 1.9%. NYSE’s ‘Floor Operation’s UBS Director, Cashin’s Thursday’s statement was:
“No disrespect to Mr. Cohn, but what's really affecting the market is not the fear that only he would leave”.
 
Following the Twitter claim from an “unverified” account of Cohn’s resignation, the reporters have “debunked” the same, while the later statement of White House confirmed Cohn’s intentions of remaining “in his position”. According to Cashin if Cohn were to depart, resulting in a “mass exodus” at the cost of “many investors' confidence in the Trump administration”. In Cashin’s words:
“The one thing that's been said, even by people who don't favor the president, is that, 'Well, at least he's surrounded himself with some very capable people: The generals that he has, Wilbur Ross, Mnuchin'. People began to fear, as they did this morning, that if Cohn would leave, then others might follow, and he would no longer be surrounded by competent people, and that took a hit in the market.”
 
On the other hand, the Research’s Director at Smead Capital Management, Tony Scherrer, thinks that the primary cause of “stock-sell-off” is linked to the “nature of the Trump administration”:
“Our CIO likes to call this 'the world's greatest reality TV show,' in terms of what we're seeing in Washington D.C.”.
“And when you have that, you have episodes that are sometimes very fun and encouraging in terms of what it means to business and you have other times that are kind of disconcerting, and that's what we've got going on today.”
 
 
 
 
References:
www.cnbc.com







Science & Technology

Large U.S. Study Finds Detection Of Irregular Heart Beat By Apple Watch

Apple to present Netflix competitor at the end of March

Live Human Under-Skin Chip Implantation Takes Place At Barcelona

IDC: Wearable tech gadgets market is booming

Second Patient In 12 Years Becomes HIV Free By Bone Marrow Transplantation

Car-Sharing Platforms Could hold The Key To 5G & Auto Industry Collaboration

Bezos tells about his space plans

Fast Company: Apple isn't the most innovative anymore

U.S. Space Program Could Be Delayed Due To SpaceX, Boeing Design Risks: Reuters

What trends will be affecting the health sector in the coming years?

World Politics

World & Politics

China's expansion into Europe: Italy’s ports are next

US watchdog is accused of violating aircraft certification process

Large Section Of Citizens Unhappy With Public Services & Benefits: OECD Survey

Largest companies reveal volumes of plastic produced by them

US Warning To Germany About Intelligence Sharing Over Huawei Ban

Mercer reveals the world’s safest cities

No vaccinations, no school: Italy’s new law

Why the new Aachen Treaty cannot save France-Germany relation