The host and commentator of the CNBC market, Jim Cramer, warned that America was in reserve of another “black Monday” market accident similar to the 1987 record collapse if President Trump does not restrict his tariff plan.
CRUMER – Who noted that the 1987 accident saw the industrial average of Dow Jones drop by 22.6% in a single day – said that the bloodbath could be repeated after the brutal two -day sale after the announcement of Trump’s radical prices against nearly 90 countries.
“If the president does not try to reach out and reward these countries and companies that respect the rules, then the scenario of 1987 … The one where we dropped three days, then down 22% on Monday,” said Cramer during his show on Saturday, referring to the worst fall in the history of Dow.
“We will not have to wait too long to find out. We will know on Monday,” he added.
The president shocked the global economy on Wednesday when he announced a coverage rate of 10% on all imports in the United States, with higher samples which should take effect on April 9 against major exporters such as China, the European Union, Japan and Vietnam.
China has announced reprisal rates following Trump’s order.
In the two days following the announcement of the “Liberation Day”, the DOW plunged by 3,910 points, making it the worst loss of two days from the pandemic.
The S&P 500 also dropped by almost 6%, the Nasdaq, heavy in technology, seeing a similar drop.
Total market losses suffered 6.6 dollars on the value of the US markets.
While Cramer had fully supported Trump’s plan to impose prices, the market analyst said he would no longer be favorable if the dark perspectives on Monday stop.
“If President Trump remains uncompromising and does not do anything to improve the damage I have seen in recent days, I will not be constructive here,” said Cramer.
“And if Europe moves against our fabulous technological companies next week, I will be furious.”
While Cramer often praises his foresight on the market, he also has a reputation as a ugly stock picker, many often betting against his predictions to the point where an inverse ETF of Cramer Tracker was manufactured in 2023.
The fund, which chose the opposite of Cramer choices, was created as a result of its ardent advice to abandon the actions of the Facebook Meta parent company after a lamentable profits report – only for actions later.
The chief economist of Apollo, Torsten Slok, finally warned that a recession could be in reserve for the United States according to the duration of the shock and the prices of the market.
“If these rates levels remain in place for several months and other countries retaliated, this will lead to a recession in the United States and the rest of the world,” the expert said on Friday.
