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

Scientists Discover Largest Ever Under Water Volcanic Eruption Near New Zealand

Bitcoin craze increased load on the power grid to the maximum

PC And Server Performance Slows Down Due To Security Patches For Chip Flaws, Says Microsoft

Cybersecurity Firm Claims Cryptocurrency Monero Might Be Getting Funneled To North Korea University

The Way We Travel Will Be Changed by The Colorless, Odorless Gas - Hydrogen

EU's Big Change In Data Protection Rules Makes Businesses To Get Ready For It

Artificial Intelligence Helps NASA Find An 8th Planet In Orbit Of A Distant Star

Australian Research Success Could Mean Shatterproof Cell Phones Could Soon Be A Realityv

Top ten hi-tech events of the year

Tesla Considering Designing And Developing AI Chips On Its Own To Support Its Auto-Pilot Project

World Politics

World & Politics

2017 Was Second Warmest Year Since Records Were Kept And It Had No El Nino Effect

France and Germany want to reform the eurozone

Take and go away: new approach to refugees in Europe

Both The Korean Countries Will Come Together In Olympic Talks

Parties of Germany agreed on the migrants problem

Munich Re: Natural disasters caused record damage in 2017

High-Level Talks To Be Held Between North And South Korea In Over Two Years

Sexually Abusing Children Interests An Estimated 20,000 British Men, Shows Police Monitoring Of Chat Sites