Wall Street

Wall St. fears the summit and America’s fall

The United States has dominated the global market since 2009. What has come to be a global norm is now facing the threat of being overthrown. The US stock market has produced a large amount of profit foScreen Shot 2017-04-04 at 4.51.04 PMr investors since 2009 but new, more economic competition is looking to take over the market. As show in the accompanying graph, the US is set to take second place in global production and dominance by 2030. This means that investors will now take their money to these countries and we will lose our seat front and center. There are certainly solutions to this problem. The main one being to diversify our market and be more inviting to outside investors. This policy comes head to head with President Trump’s policies that promote the domestication of all transactions.

Although we may consider issues such as Obamacare domestic issues they greatly affect the willingness of outside investors to bring business into our country.

In this graph alone one can observe how the inability of our government to replace Obamacare has driven investors away. The following graph shows the rate of growth in the AUM (or Assets Under Management) in Japan and in the United States.

Screen Shot 2017-04-04 at 4.56.41 PMThe AUM of a country shows how many assets or investments are being invested in a country and circulated through an economy. The higher the AUM of a country the better of the economy of said country is.

The majority of the financial world is waiting for the quarterly reports to come in. Rumors of economic slow down have frightened outsiders into coming near the stock market.

It is always important to remember that investors are not merely looking at policies and important head figures. Your voice counts and publicly expressing your opinion about these issues influences where money goes in our global economy. The large amount of public backlash against certain policies and the apparent lack of momentum expressed by the public over our variety of social media platforms has made investors shy of coming to our market. The outspoken voices on social media have made our economy and society seem unstable and therefore unprofitable to outside investors.

 

 

Sources

http://www.economist.com/blogs/dailychart/2011/09/global-economic-dominance

http://www.businessinsider.com/stock-market-us-leadership-2017-4

http://www.marketwatch.com/story/us-stock-futures-dip-with-analysts-blaming-retreat-on-fears-over-trump-xi-summit-2017-04-04

http://www.investopedia.com/terms/a/aum.asp

http://www.investors.com/market-trend/stock-market-today/stock-indexes-bogged-down-trump-trade-stuck-in-the-swamp/

http://money.cnn.com/2016/01/28/news/economy/cracks-in-the-us-economy/

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