How Donald Trump's Tariff Troubles Turned New Market Lingo Into Buzzwords

The United States President Donald Trump imposing tariffs has triggered a bigger pain-point for laymen. There are a lot of market terms that have been floating in general use across the world and different strata of the society, including people that are not well-versed with these terms.

The Trump tariff scenario is therefore solely responsible for turning all of these market terms into buzzwords.

Market Lingo Decoded

Here are some of the words and terms that have been decoded:

Recession: The ever-feared word recession means a situation wherein the economy shrinks and unemployment rises. The National Bureau of Economic research has officially declared a recession in the United States, currently.

Of the factors that are taken into consideration before a recession is declared are things such as jobs, income, and factory output. A recession is a big drop in economic activity across the country which lasts over a few months.

Bear And Bull Market: When stock market indexes such as the S&P 500 or Dow Jones decline by 20% or more as compared to their recent highs, it is referred to as a bear market. The reason behind the name is the fact that a bear hibernates, quite like the condition of the market at such times. Likewise, a bull market means that there is a rise in stock prices as a bull typically charges forward.

Dead Cats Bounce: There are times when a stock jumps briefly after a sharp fall. This phenomenon is referred to as a dead cat bouncing, which means that even a dead cat will bounce if it falls from a great height. These recoveries are typically short lived.

Capitulation: When investors finally give up and start selling their stocks out of fear after watching prices plunge, capitulation is at play. This is a move triggered by panic. Though it may look like the stock market has hit its lowest point, people usually realise that much later.

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