The veteran of Wall Street, Art Cashin, talking to CNBC, said that the rumour of the Chief Economic Advisor of President Trump, Gary Cohn, leaving his post, is not solely responsible for the Thursday’s drop of stock prices.
The doubts that hovered around the “Trump administration’s image” for its ability on enacting on “its agenda” brought down Dow Jones industrial by almost 1.2 %, while the 500 Index of S&P dove down by 1.5% and the “Nasqad composite” fell by 1.9%. NYSE’s ‘Floor Operation’s UBS Director, Cashin’s Thursday’s statement was:
“No disrespect to Mr. Cohn, but what's really affecting the market is not the fear that only he would leave”.
Following the Twitter claim from an “unverified” account of Cohn’s resignation, the reporters have “debunked” the same, while the later statement of White House confirmed Cohn’s intentions of remaining “in his position”. According to Cashin if Cohn were to depart, resulting in a “mass exodus” at the cost of “many investors' confidence in the Trump administration”. In Cashin’s words:
“The one thing that's been said, even by people who don't favor the president, is that, 'Well, at least he's surrounded himself with some very capable people: The generals that he has, Wilbur Ross, Mnuchin'. People began to fear, as they did this morning, that if Cohn would leave, then others might follow, and he would no longer be surrounded by competent people, and that took a hit in the market.”
On the other hand, the Research’s Director at Smead Capital Management, Tony Scherrer, thinks that the primary cause of “stock-sell-off” is linked to the “nature of the Trump administration”:
“Our CIO likes to call this 'the world's greatest reality TV show,' in terms of what we're seeing in Washington D.C.”.
“And when you have that, you have episodes that are sometimes very fun and encouraging in terms of what it means to business and you have other times that are kind of disconcerting, and that's what we've got going on today.”
References:
www.cnbc.com
The doubts that hovered around the “Trump administration’s image” for its ability on enacting on “its agenda” brought down Dow Jones industrial by almost 1.2 %, while the 500 Index of S&P dove down by 1.5% and the “Nasqad composite” fell by 1.9%. NYSE’s ‘Floor Operation’s UBS Director, Cashin’s Thursday’s statement was:
“No disrespect to Mr. Cohn, but what's really affecting the market is not the fear that only he would leave”.
Following the Twitter claim from an “unverified” account of Cohn’s resignation, the reporters have “debunked” the same, while the later statement of White House confirmed Cohn’s intentions of remaining “in his position”. According to Cashin if Cohn were to depart, resulting in a “mass exodus” at the cost of “many investors' confidence in the Trump administration”. In Cashin’s words:
“The one thing that's been said, even by people who don't favor the president, is that, 'Well, at least he's surrounded himself with some very capable people: The generals that he has, Wilbur Ross, Mnuchin'. People began to fear, as they did this morning, that if Cohn would leave, then others might follow, and he would no longer be surrounded by competent people, and that took a hit in the market.”
On the other hand, the Research’s Director at Smead Capital Management, Tony Scherrer, thinks that the primary cause of “stock-sell-off” is linked to the “nature of the Trump administration”:
“Our CIO likes to call this 'the world's greatest reality TV show,' in terms of what we're seeing in Washington D.C.”.
“And when you have that, you have episodes that are sometimes very fun and encouraging in terms of what it means to business and you have other times that are kind of disconcerting, and that's what we've got going on today.”
References:
www.cnbc.com
