Global stock market decline

 

Global stock market declines...

For every action, there is an opposite reaction, equal in magnitude and strength. This is what happened after US President Trump approved the implementation of tariffs. There is a well-known economic norm. Fears raised by natural disasters or a government decision, such as a tariff, prompt investors to halt any further investment. Or investors may postpone their decision to enter a particular market. However, the tariff decision raised global fears of a global recession, and consequently, stock market indices worldwide declined. The decline in buying stocks and bonds in the markets is due to investors' fear of the future, as shareholders receive annual or quarterly dividends from their shares.  The profits of these companies will decrease and decline after the customs tariff decision. Consequently, global stock markets, which consist of shares of companies, industrial facilities, large institutions, and bonds issued by countries around the world seeking financing for their projects, will also decline.

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All these companies and institutions were hit hard by the tariff decision... Most of these companies or factories consist of shares that are traded in the financial markets. This makes it easy for the investor who owns the shares... to sell his shares at any time... and any investor who wants to buy shares in a certain company can buy at any time... if there are shares offered for sale in the financial markets for this company or institution. It is a well-known economic principle about the ease of capital entering and exiting the financial markets without incurring major losses... Most of the large American companies have factories in East Asia to benefit from the cheap price of land and low wages of workers inside the factories, and the production of these factories was previously exported to the United States at low prices. But after the approval of the tariff... the prices of products exported to the United States will rise... and consequently demand for them will decrease. Consequently, the American factory in East Asia will decide... to reduce production lines and get rid of workers because they are no longer needed. All of these factors led to a decline in global stock markets as the world's largest market closed its doors... and reduced the number of products exported to it. Therefore, it is a completely natural situation for global financial market indicators to decline... due to the fear of new investors and the anticipation of shareholders to see the effects and consequences of the US decision and the global recession it will cause. Any new investor who wants to buy shares will also have to wait to avoid the tariff earthquake... and there is no temporary solution to pull the world out of the economic recession other than ending the Russian-Ukrainian war and returning Russia and Ukraine to the global economy.

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