The host of CNBC and commentator of the veteran market Jim Cramer sounds alarms after the radical rates of President Donald Trump announced on April 2 – warning that the market could be about to an accident that recalls the “Black Monday” of 1987.
“If the president does not try to reach out and reward these countries and the companies that respect the rules, then the scenario of 1987 … The one where we dropped three days then down 22% on Monday, has the most coïssence,” said Cramer, referring to the historic collapse of the industrial average of Dow Jones. “We will not have to wait too long to find out. We will know it by Monday.”
Black Monday refers to October 19, 1987, when the stock markets around the world collapsed in a single day – led by the industrial average of Dow Jones, which plunged 22.6%, its worst drop in percentage of a day in history.
A combination of fears concerning the increase in interest rates, high assessments, geopolitical tensions and the rise of computerized programs have created a perfect storm. Once the sale has started, the algorithms have triggered more sales – leading to a snowball effect.
On April 2, Trump unveiled a coverage rate of 10% on all imports, with harder samples for specific countries which should come into force on April 9 – including 34% on China and 26% on India. In response, China has imposed reprisal rates, intensifying the world fears of an prolonged trade war.
The markets did not take the news. Friday, the DOW plunged 2,231 points after a drop of 1,679 points Thursday – marking the worst two -day slide since the first days of the COVVI -19 pandemic. The NASDAQ fell 962.82 points (5.8%) and the S&P 500 fell by 322.44 points (5.97%).
“It is difficult to build a new, weaker world order on the fly,” said Cramer. “Trying frantically to do so but see nothing that removes the scenario of October 87 of the table. Those who have ponted in the background slept with the fish … so far. ”
However, Cramer noted the strong employment report as a possible stamp: “This makes it less likely that an accident will necessarily lead to a recession.”
“I will contain my anger, but only because I lived 1987 and at the end, I went out well. I was in cash for the accident. I know what it looks like,” he added.
In January, Cramer offered his point of view on Bitcoin – and drew a line between the assets himself and his largest funder. “If you want to have Bitcoin, (you) clean bitcoin,” Cramer told a caller. “I have Bitcoin, you should have Bitcoin. Bitcoin is a good thing to have in your wallet. ” But then came his strong distinction: “But not microstrategy,” he said, without developing more.
