Transcript
A (0:00)
Foreign. Hello, welcome to Slate Money, your guide to the business and finance news of the week. I'm Felix Salmon of Axios. I'm here with Elizabeth Spires of the New York Times and Humple Moose, something like that, passion fruit, all manner of places. We'll talk about that later. We are joined also of course, by Emily Peck of Axios.
B (0:34)
Hello.
A (0:34)
Hello. And we are going to talk about the stock market. It is down and we're going to talk about whether that matters. We're going to talk about finance and whether it's going to ever become an American company. And if not, does that matter? We are going to talk about MrBeast and his chocolate bar. Elizabeth Spires is going to eat one of his chocolate bars. We have a Slate Clust segment on Banner White and the optimal number of days to work per year. It's all coming up on Slate Money. Okay, so for markets nerds, I know there's one or two of you out there. One of the words that was being thrown around this week was, was correction, as in if you look at the market, the broad stock market, the s and P500, it briefly touched the level where it was 10% below its high point. And markets nerds and people keeping almanacs and that kind of thing have a name for this. It's called a correction. If it then goes down as much again and goes down 20% from its high point, that is called a bear market. See, we define terms here on Slate Money and people care about this because they like round numbers and, you know, that kind of thing. But people are particularly caring about this because it is happening in the midst of Trump chaos. And so there is a natural tendency to basically assign some kind of causality there and say the stock market is going down because Trump something, something, something. And so that's really what I wanted to just sort of look at today and ask Emily. Basically, you've been looking at big global events of massive geopolitical and global importance over the decades. And tell me what you found in terms of whether and when they have any real effect on the stock market.
C (2:47)
Well, there are two kinds of big global or national events that affect the stock market. One kind is sort of obvious and I don't know if we need to talk about it all that much, but it's financial type events like the financial crisis or the Great Depression or, or Black Monday, you know, during the first George Bush presidency, those things happen and the markets fall. And I found this really nice list of various events.
A (3:18)
So I mean, the first thing we should just say is that Black Monday is exactly the other way around. The stocks fell and then that created news rather than news happened, and that caused stocks to fall.