Side-Effect of Trump Flip-Flopping on Tariffs
a year ago
- #tariffs
- #market volatility
- #Trump
- Trump's flip-flopping on tariffs has caused significant stock market volatility.
- The VIX, measuring S&P 500 volatility, is at levels not seen since the COVID pandemic.
- Trump's actions indirectly benefit firms that donated to his campaign by increasing market uncertainty.
- Increased uncertainty leads to wider bid-ask spreads, benefiting market makers.
- Market makers like Goldman Sachs, Ripple, and others profit from higher bid-ask spreads.
- Despite short-term drops in share prices, long-term volatility may boost profits for these firms.