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 for 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.
The 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.
Today was the day we broke the losing streak that has lasted eight-months. This up in the economy has given the energy and financial sectors the boost they needed. The energy sector has suffered greatly with the conflict surrounding oil and the concerns for the environment. Our fear of conflict has driven stock number for energy companies to all time lows until today. This comes around the same time that President Trump has stated he will end the “war on coal”. The public has used social media platforms to show their distaste for conflict and their eagerness to have conflicts resolved. The government taking this voice into consideration has opened more venues for energy, such as coal.
The market seemed to level this week but upon closer inspection one can see the fall in YouTube and online video sharing websites’ stocks. This may seem unimportant to us, after all the economy does not depend on YouTube. However this represents a larger problem for our economy. YouTube’s recent expansion into the larger movie and TV show edge of media has proven to be unsuccessful. In a world where online streaming is our life source, YouTube has failed epically. Large TV conglomerates are looking to take over this platform and use it was a way to advertise more and raise their stock prices through newly acquired customers.
What happens when we hear that Wall Street has ended on a historically low note?
Some of us may panic when reading this. We being jumping to the worst conclusions, others of us may feel indifferent. After all, what can one bad day on Wall St. do to us? The truth is that this 1.24% drop does not affect our everyday lives. It won’t dramatically change our everyday expenses over night. This drop instead gives us a marker of where our country is economically and how our newly elected President’s economic plan is working in real time.
President Trump on Wall St.We have suffered the biggest loss in the stock market in 110 trading days. We have suffered a 1.24% loss or a loss of 29.45 points. What does this mean for the general population? Many people expected to see a massive spark in the economy with our new President. Suddenly the fear that President Trump’s economic development may be overshadowed by the political controversy surrounding his presidency is all too real. Issues such as health care and immigration are causing a delay in the grand economic plan that President Trump has to “make America great again”. Everyday more and more issues are brought up, proving this to be a very controversial presidency. The opposing forces are given a large presence by social media, which are using different platforms to express their disapproval and organize movements against our President.
The corporate and financial world observe these movements and makes decisions with the general opinion in mind out of fear of being called out or boycotted. Our society is in one large vicious cycle: the public outcry over President Trump’s policies impacts the movement of our corporate world. It is safe to say that when we hit a historical low on Wall Street, our country is no longer happy.
Social Media has a large impact in the world of finance. Large conglomerates and corporations mean goal is to make money. The money they receive comes from us, the general public. Our public distaste for President Trump and all his associated companies has frightened investors. Although we expected a large economic revival the truth is we are suddenly faltering. The most noticeable example of this is the dropping of Ivanka Trump’s fashion line. Large stores such as Nordstrom and Neiman Marcus have stopped doing business with Trump’s daughter as a sign or protest and to not suffer the backlash of the public. Since the election of President Trump there has been a large amount of public displays of disapproval. As a population we have taken to our social media platforms and expressed our opinions. Large companies see this and take note, making plans to support the popular opinion and not lose the favor of the general public.
By Natalie Rocha