Bad news for investors: last week, Trump’s trade war caused a free fall in the stock market. The financial market situation remains unpredictable for now. It begs the question: but is a stock market crash actually good for anything? You will hear from associate professor of finance Esther Eiling in the latest episode of Vraag 2.
In this episode of Vraag 2, editor Jip Koene talks to Esther Eiling. She is a senior lecturer in Finance and an expert on investments, asset management and global financial markets. According to Eiling, there is little positive to say about last week’s abrupt rate fall, but it does provide a lot of information.
‘It gives an idea of what expectations investors have of the economy now, but especially of the fluctuations in economic activity in the future,’ says Eiling. ‘Share prices are looking ahead, so to speak.’
According to Eiling, the fluctuations in the stock market could potentially lead to pressure on US President Donald Trump’s policies. ‘Although with the current policies and leadership in the US, there is a lot of uncertainty,’ Eiling says.
Listen to the latest podcast episode on stock market crash on Spotify.
Production & presentation: Jip Koene
Final editor: Irene Schoenmacker
Music: Paolo Argento