Expectations were unrealistic
Wall Streeters knew President Trump was going to levy tariffs on countries near and far. They were aware that the list would include long-time trading partners. They expected that standing trade agreements would be disregarded. Plus, they knew Trump would use reciprocal, higher tariffs if another country introduced or upped tariffs on U.S. goods. And they knew all of this would be done without the Congressional input or approval.
So, why did the stock market plummet? Was Warren Buffet the only person taking preventive action by selling stocks to raise cash? The answer is likely that Wall Streeters thought President Trump was on the side of money-making. Therefore, certainly, they thought, his actions would somehow benefit Wall Street.Forgotten principles
Wall Streeters appear to have forgotten the two key principles of successful financial actions that are missing from President Trump’s planning:
First, successful financial actions need to abide by laws and regulations. If not, they are viewed as „rogue“ and carry high risk of being overturned with the principal actors being punished.
Second, successful financial actions depend on ethical, principled actors.
