Keep pulling the thread on Aswath Damodaran.
The current US tariff policy has the potential to create long-term structural changes to the global economy, which justifies the market's strong negative reaction.
Aswath Damodaran believes the White House's primary goal is to reallocate the distribution of economic output, rather than to support the performance of equity markets.
Aswath Damodaran predicts that as the global economy shrinks due to increased trade barriers, the U.S. economy will also shrink.
Aswath Damodaran believes the current market downturn is a rational "markdown of equities" rather than irrational panic selling.
For the past 40 years, the share of the overall economic pie going to equity investors has consistently increased.
The current administration's response to market turmoil is the opposite of historical norms, where the Secretary of the Treasury would typically attempt to calm markets.
Aswath Damodaran predicts that no economic group will ultimately receive a larger share of the economy as a result of current US trade policies.