Despite President Donald Trump’s trade wars and their predicted devastating impact on the global economy, investment markets are experiencing a boom. The US stock market, in particular, has seen significant gains, with the S&P 500 index crossing the 6,000 mark and the Dow Jones Industrial average hitting an all-time high. The Nasdaq Composite index is also at near-record levels.
The Canadian stock market has followed suit, with the S&P/TSX Composite index reaching a record high of 25,600. Similarly, in Europe, the FTSE 100 Index of London Stock Exchange listings hit a record 8,700, and the DAX Performance Index in Germany rose to the 22,000 mark.
Some experts view Trump’s trade war stance as a bluff, with financial markets seemingly unfazed by his rhetoric. A British investment manager was quoted as saying that “the experts see Trump’s discussion of tariffs as a bluff.” Instead, investors are focusing on solid earnings, steady consumer spending, and a soft landing for the economy.
The question remains whether this is a bull market or if we’re driving into what some might call a “bullshit” market. While the impact of Trump’s trade wars on certain industries and companies may be significant, broader economies may continue along their normal growth path to profitability.
Source: https://financialpost.com/opinion/terence-corcoran-trump-fuelled-trade-fiascos-are-failing-to-swamp-the-markets-why