Global Trade and Finance

Student’s Name:Response paper topic: Global Trade and Finance
Article title: Why has the Stock Market Been Dropping? The expansion Heads Toward a New PhaseArticle publication: New York TimesArticle date: October, 25th 2018

Section One
Neil Irwin in his article Why has the Stock Market Been Dropping? The expansion Heads Toward a New Phase indicates that this drastic decline in stock market means the economy is resetting and not crashing. He say that the way the economy is shifting will negatively affect stock prices in the years to come but positively affect the economy and individuals depending on it. Neil says that the bull market has been a complete dream for stock investors. As compared to the worldwide growth, there has been a steady rise in the United States of America’s economy, a move that has led to drops in the interest rates, making investments in the stocks more inspiring as compared to bonds and cash. Fast growth results from weak growth and high employment creating low pressures for companies in paying well for labor and the raw materials supplied. There are plenty of alternatives (Irwin 2018). The second factor leading to the rise in economy is the domestic policy signed by President Donald Trump that led to a steep reduction the rates of corporate tax; shareholders reap higher profits after taxing. Neil’s arguments for a reset and not a crash are based on the facts; that economy is getting heated up as well as interests rates steadily rising, a…