Black Monday Mayhem Knocks with Trump Tariff Force

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Stock Markets and Bitcoin Plunge as Global Recession Fears Mount

By S Jha

New Delhi, April 7: CNBC host and market commentator Jim Cramer yelled last night with a revisit to 1987 ‘Black Monday’ stock market crash. Cramer shouted that a 22.7 per cent single day stock market crash is on the cards.

Asian stock markets in early trades are almost endorsing Cramer. Hong Kong-based Hang Sang is trading with loss of almost nine per cent.

Japan’s Nikkei cracked up almost six per cent. Singapore’s Straits Times is down by over seven per cent.

Bitcoin also nosedived overnight. Cramer lately had been laughed at his outlandish predictions. But he almost screamed in his show to assert that US President Donald Trump must talk to nations abiding by rules to avert an economic disaster.

India’s GIFTNifty is an indicating an unseen ‘Black Monday’ for at least three years. GIFTNifty s lower by almost 800 points. Such an outright crash was last seen after Russia announced “special military operations” in Ukraine in 2022.

India’s brokerages – Motilal Oswal, Anand Rathi Group, and others – have argued that there will be minimal impact of Trump tariffs. “India will escape unhurt,” they suggested in their notes. Tata Mutual Fund also made similar claims.

Trump’s Tariffs Erase $12 Trillion in Global Stock Market Value

But Trump’s social media platform ‘Truth Social’ is gung-ho about “recession”, “depression” et al. To make an omelets, you need to break an egg, argue Trump followers.

“If President Trump does not engage with countries and companies that adhere to fair trade practices, a scenario similar to 1987 could unfold,” yelled Cramer in his show. But Trump seems not listening to him.

A crash in inflation to 1.15 per cent in the US shored up Trump’s adrenaline. Earlier, he posted data of record employments.

Stock market veterans often state the investors refuse to believe onset of bear phase. They admit presence of the bear phase far latter. By then, bears maul compulsive believers.

Amit Seth, a stock market veteran of decades, advised his followers to “wait out the uncertainties”. The Kolkata-based stock market commentator warned investors from taking positions in times of extreme uncertainties.

But the sagely words also suggest buying dips in the stock market. Others also counsel against catching falling knifes.

Cramer had seen 1987 rout in the stock market. By luck, he was on cash. Warren Buffet reportedly has cashed out from the stock market long ago.

The foreign institutional investors (FIIs) were indeed wiser, said equity eagle eyes in an investors’ group. The FIIs had been selling India for over eight months. They pressed accelerator when convinced of Trump victory in the November US presidential election.

Eagle eyes also counsel new investors that if they aren’t on cash, screens need not be seen. Bad days are too short in stock markets, they counsel.

(Disclaimer: This article makes no recommendation for any kind of trades in the stock market)

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