Markets remain unsettled as investors face ongoing uncertainty and volatility. Rebecca Walser, CEO of Walser Wealth Management, recently spoke with TheStreet to explain why further turbulence is expected.
Rebecca Walser expressed her view on whether a market bottom has been reached or if further downturns should be anticipated. According to Walser, the current situation is only the beginning. She pointed out that, despite being in office for less than six months at the time, President Trump was likely to leverage his position. Drawing from his published strategies, Trump was expected to use his power as the President of a country whose currency acts as the global reserve. Walser suggested that Trump aimed to renegotiate trade deals to establish more balanced and fair arrangements.
Walser highlighted the discrepancies in international trade, such as Europe imposing taxes on American champagne without equivalent U.S. tariffs on European imports like Scotch. She noted that Trump was bringing attention to these imbalances. Beyond tariffs, Walser remarked on America’s substantial contributions to international organizations like the UN and NATO, arguing that the U.S. bears the main financial burden. She suggested that Trump’s position was that this situation was inequitable for the U.S. and its citizens, and that there needs to be a broader distribution of financial responsibilities.
According to Walser, Trump’s use of tariff policy is intended to bring about both economic and geopolitical changes. She predicted that this situation is just beginning, forecasting a year of volatility and a further market downturn. Walser attributed this to global macroeconomic issues, including the printing of over $20 trillion equivalent USD worldwide from 2021 to 2023, following the coronavirus pandemic. This influx of currency needs to be absorbed without causing domestic hyperinflation or additional problems. Walser viewed the market volatility as a reckoning for these global developments, suggesting that while there will be buying opportunities, investors should avoid selling in panic.