At this moment in time Donald Trump is under extreme pressure as the coronavirus continues to drive down the US economy. Huge job losses would appear to be on the way even though many have been temporary laid-off or furloughed. However, amidst this “difficult” background Donald Trump still remains extremely positive about the US economy and the US stock market. So, would you trust Donald Trump with your investments?
Leading from the front
There is no doubt that Donald Trump leads from the front with a bombastic style that certainly grabs headlines. He does not suffer fools gladly, is not afraid to speak his mind and is not over popular in media circles. Supporters would suggest that he is “one of the people” while others would suggest he is out of his depth and was criminally slow to react to the coronavirus crisis. However, if we take a step back and look at Donald Trump’s investment career, he has proven to be successful. Continue reading “Would you trust Donald Trump with your investments?”
Early this week Donald Trump gave an extremely bullish press conference regarding the US economy. He wholeheartedly believes that in the immediate aftermath of the coronavirus pandemic he can push the economy to previous highs and reinvigorate stock markets. There is one thing being positive and giving upbeat signals but what do the statistics say?
Recent data confirms that more than 700,000 jobs were lost in the US in the month of March. This breaks a 10 year string of gains which is phenomenal by any stretch of the imagination. However, this figure is but the tip of the iceberg when you take into account those laid off and furloughed over the last few weeks. Continue reading “Is Donald Trump right to be bullish about US economy?”
The 7% rise in Uber shares in extended trading doesn’t seem to correlate with the company’s downbeat announcement. Having lost a staggering $8.51 billion last year the company has been hard-hit by the coronavirus. So, why did the shares rise 7% in extended trading?
Analyst guidance withdraw
There has been concern and uncertainty regarding the Uber share price and prospects for the company in light of the coronavirus. Guidance given during the company’s Q4 earnings call has been withdrawn and the company expects not only an impact on business but a huge write-down on investments. It is fairly obvious that Uber has significant challenges in light of the coronavirus and the lockdown in economies across the world. This is a company which has lost literally billions of dollars in recent years and is in reality no nearer regular profitability. Continue reading “Uber shares rise on relief”
When the chips are down it seems that corporate America has a habit of pulling together despite differing political opinions. As the US, especially New York City, is ravaged by the coronavirus, Apple have sprung into action. In a perfect example of innovation and speed of action the company has started producing medical equipment for medical workers across the US.
One million face shields per week
In just a matter of days, Apple has brought together:-
• Product designers
• Packaging teams
The company is on course to make 1 million medical face shields per week with the first already having been delivered. The simple but extremely effective face shields can be packed 100 to a box and assembled in less than two minutes. At the same time the company has already donated 20 million N95 masks to the US government and medical facilities up and down the country. Continue reading “Corporate America fights back”
Amidst the doom and gloom, concern and confusion surrounding the US government’s response to the coronavirus pandemic, foreign investors seem to be looking more long-term. Even prior to the coronavirus pandemic, the US real estate market was seen by many foreign investors as “the” market to be in during 2020. Despite the threat of a significant economic hit, it would appear that the vultures are already hovering ready to swoop on bargain buys.
The world is currently awash with cheap finance and, if property prices do fall significantly in the short to medium term, rental yields could become even more attractive. The truth is that whether via government financial assistance or utilising employment income, everybody needs somewhere to live. It is highly unlikely US, never mind worldwide, interest rates will rise significantly for the foreseeable future. As a consequence, as markets do eventually start to pick up after the pandemic is over those liquid investors brave enough to buy at the “bottom” could see a significant revaluation in their assets. Continue reading “Property investors eyeing US real estate bargains”
Donald Trump is on the verge of signing a new act which would release $2 trillion in aid for the US as a means of combating the coronavirus threat. While this is a huge figure there are already serious concerns that it will not be anywhere near enough. As the US stock market looks to Donald Trump for a vote of confidence, what will investors make of the latest move by the president?
New York seriously concerned
The governor of New York has welcomed the bailout plans by the US government but suggested they are nowhere near enough for the state. As a direct consequence of the bill going through Congress, we will see $1.3 billion released to New York City. However, this would appear to be a drop in the ocean with an expected $15 billion revenue shortfall in the New York City budget alone. Continue reading “Is $2 trillion enough to combat US coronavirus threat?”
There is no doubt that Donald Trump is an intelligent man but the coronavirus could prove to be his political downfall. While few would criticise his initial optimism regarding the fight against the coronavirus, he does need to let reality speak. The criticism of the president is growing by the day and his strategy of literally digging in his heels is antagonising voters even more. So, what should Donald Trump do?
Let the experts speak Donald!
Those who follow Donald Trump’s tweets will be well aware that he has flip-flopped between non-action and over action with regards to the coronavirus. He has criticised experts, shot down his political opponents and to all intents and purposes moved himself into political isolation. Indeed there was speculation that he was becoming obsessed with plans to intentionally infect him with the coronavirus. This did not go down well with voters….. Continue reading “Time to let the experts speak Donald”
The Organisation for Economic Cooperation and Development (OECD) has warned that expected worldwide economic growth for 2020 could fall to as little as 1.5% from the previously forecast 2.4%. While this is seen as a worst-case scenario, it is now recognised that the coronavirus is the single largest threat to the worldwide economy since the financial collapse of 2008. Indeed, some experts believe that the reverberations as a consequence of the coronavirus could be more wide reaching.
Weak economies getting weaker
When you bear in mind that worldwide economic growth hit 2.9% 2019, what was seen as a weak year, 2020 could be even worse. While Chinese economic growth is expected to fall below 5%, compared to 6.1% in 2019, many people are already sceptical of these figures. Even this would be the weakest growth rate in China for nearly 30 years and cast a serious doubt on prospects for the worldwide economy. China and the Far East are extremely important to the worldwide economy and as we know the coronavirus has already had a huge impact in this area. Continue reading “Worldwide economic growth could half”
Over the last few days Donald Trump has seemingly been found wanting when it comes to the US government’s response to the coronavirus. Initially he dismissed it as effectively a non-event only to very quickly backtrack and announce a multibillion-dollar plan to protect the US. He has also been questioned regarding the appointment of various government officials who, in the eyes of many experts, have no relevant experience in tackling what is a unique challenge.
Markets look to governments for confidence
If you look back just a few weeks, the US stock market had fallen slightly but then there was a rebound amid suggestions that the coronavirus would not be as big a problem as had been first thought. In hindsight, this bullish and effectively incorrect stance would appear to have put back the US government’s response to the coronavirus some days/weeks. It also shows that markets do look to governments for confidence and direction especially in troubled times. Continue reading “Is the coronavirus exposing Donald Trump’s weaknesses?”
Stock markets around the world are in freefall amid serious concerns regarding the coronavirus and its impact on the worldwide economy. We have already seen an array of blue-chip companies warning about their short-term profits as a consequence of coronavirus related issues. Travel restrictions to a lack of component imports from the Far East are now starting to hit companies at the bottom line. So, what can the government do to assist and when will confidence return?
Markets dislike uncertainty
Those who follow the stock market will be fully aware that whatever definitive scenario, it is easy to value assets when taking into account the risk/reward ratio. The problem with the current situation is the uncertainty about how long the coronavirus will continue to spread and how this will impact the worldwide economy. There is also the double whammy of blue-chip companies announcing on a regular basis that they will see short-term problems due to coronavirus related issues such as supply/travel. Continue reading “The relentless fall in stock markets continues”