Introduction
Jim Cramer, a renowned stock market expert, views the recent downturn in the stock markets as artificially induced. This opinion is based on his observation that it is not the economic performance of companies that is decisive, but rather political and economic uncertainties.
Main Reasons for the Turbulence
Domestic Political Risks in the USA
Cramer emphasizes that domestic political risks, such as Donald Trump’s criticism of Fed Chairman Jerome Powell and the looming debate over the debt ceiling, are shaking investor confidence. Such factors could lead to a downgrade of US creditworthiness.
US Tariffs and Geopolitical Tensions
The discussions regarding US tariffs as well as geopolitical tensions also contribute to the uncertainty and negatively affect the markets.
Unpredictability of Donald Trump
Cramer warns that the markets may capitulate to the unpredictable politics of Donald Trump. Emotions that drive prices instead of facts could cause further turbulence.
Impact on Investors
The expert predicts that the markets will remain volatile until clear political signals provide stability. Investors should accordingly adjust their strategies, for example, by reducing holdings in some volatile stocks like NVIDIA.
Conclusion
The current market turbulence is primarily driven by political and economic uncertainties, even though corporate fundamentals are strong. Investors should brace for further setbacks until the necessary political stability is restored.