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Volume and an 800 handle yesterday may indicate such. This will play out over time and a clearer picture will present..
There's no indication that rate increases had any meaningful impact on yesterday's market drop. On the contrary, several earnings calls happened where companies reported on the significant threat that the trade war has to their businesses, and the drops followed. Rate increases weren't announced yesterday. Nobody is talking about rate increases as a problem on earnings calls. Rate increases have already been priced in.
But your hero trump tells us that the Fed is wrong and he knows better.....................
https://www.cnbc.com/2018/10/10/technical-analysts-theres-more-pain-to-come-for-stocks.html
Today, the stock market had one of it's biggest selloffs since last February. The Dow Jones finished at -817.22 or 3.09% and the NASDAQ -315.97 or 4.08% of total market value.
The selloff came on fears of rising interest rates. In the past year with a robust economy and a stock market rising to record levels, Trump took the credit for it - saying that it's a function of his policies. Will he take the blame for the severe losses on Wall Street today? I don't think so.
Everyone knew that a huge bubble in the economy was forming and it would burst sooner or later.
https://www.cnbc.com/2018/06/19/jim-mellon-market-sell-off-in-us-stocks-start-of-major-correction.html
"The trade war worries are "certainly having an effect on the market, but the market is reacting because it's already far too expensive," Mellon said. "The U.S. is selling at 32 times cyclically adjusted price-to-earnings (PE) ratio, which is an all-time high. Surely it's time for a major correction anyway."
Mellon is not alone in suggesting that today's stock market is the most overvalued on record — more so than in 1929, 2000 and 2007.
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see folks this is TDS out of control.
no logic no reason behind what is said or anything remotely to responding to what was said.
all you get is but trump but trump but trump.
these types of posts can be simply dismissed for the nonsense that they are.
next time try responding to what is said if you want to have a discussion.
Trump loves to take credit for everything he doesnt do, but if things go south there is always someone else to blame. Has he ever admitted to a mistake in his long miserable life?
Yes, but we've got to keep in mind the historical perspective of where we are in the curve. The rate cuts that got us here were historic. Now we are entering normalcy, for better or worse (I was actually happy where we were during the latter Obama years).I am on board with that. Tapping the brakes is their job. Six times recently seems a little like both feet on the passenger brakes however. A measured response is generally safe.
Fear response is not always logical.
I am guessing confidence can behave the same way.....
There is a lot to take credit for none of which resonates with people who spend 24/7 here in this forum whining and complaining. Do you have an alternative to the policies that have been implemented the past year and 10 months?
FAST released earnings yesterday morning and talked at length about the tariff threat. FAST is generally followed as a proxy for the broader industrial market. Markets started falling yesterday following release of this info and the call.
https://finance.yahoo.com/news/dont-fear-volatility-october-strategist-warns-160916528.htmlIt’s been a wild week for stocks.
Initially, lower-than-expected Consumer Price Index (CPI) data sent interest rates lower and stocks higher in early trading on Thursday before stocks pared those gains and took another dip lower.
This comes after a brutal session on Wednesday, when the S&P 500 (^GSPC) tumbled more than 3% — its worst one-day drop since February — and the Dow (^DJI) fell more than 800 points. The S&P 500 is now on pace to close in the red for the sixth consecutive day.
But one market strategist says not to fear the market volatility in October.
“October should be known for volatility, as no month has seen more 1% changes (up or down) for the S&P 500 Index going back to 1950,” Ryan Detrick, senior market strategist at LPL Financial said in a note on Thursday.
Sure. Don't implement tariffs.
Trump loves to take credit for everything he doesnt do, but if things go south there is always someone else to blame. Has he ever admitted to a mistake in his long miserable life?
Yes, but we've got to keep in mind the historical perspective of where we are in the curve. The rate cuts that got us here were historic. Now we are entering normalcy, for better or worse (I was actually happy where we were during the latter Obama years).
And unemployment has finally hit the bottom of the curve too, giving rise to wage-inflation adding to the over-all inflationary picture.
Protectionism is generally bad as history shows but this time is quite different in that the tariffs are being used as a tool to leverage better deals and not an end in itself.
U.S.-Mexico-Canada Trade Agreement A Win For All 3 Nations
Right, let foreign countries manipulate their currency and trade policies that continue to generate a trade deficit for this country and have a negative impact on GDP.
I am on board with that. Tapping the brakes is their job. Six times recently seems a little like both feet on the passenger brakes however. A measured response is generally safe.
All fair points, Ludin.I see no issue with what is going on.
Higher interest rates will also mean a higher traded dollar. it will also mean that the cost of products will come down.
We have been at 0 or near 0% interest for too long.
time has come for some normalcy. which is what we are getting back too.
it makes sense for investors to take their chunk of the pie right now.
we have seen historic gains in the market over the past 2 years and
a pull back was in the works.
to me this is nothing more than normal market conditions taking affect.
Trump's policies increase the trade deficit. So why would you support them?
The new deal isn't really that different than NAFTA. Auto provisions are actually detrimental to the US. Agricultural changes affect literally only $70 million of the Canadian dairy market (0.00003% of US exports - obviously completely inconsequential to the trade deficit). Canada succeeded in getting Chapter 11 nixed. There's pretty much nothing of any significance in the new bill that was gained.
Additionally, tariffs are a monumentally stupid "tool" to use to "leverage better deals" considering the fact that any country you impose tariffs on can just impose more on you. Obvious example? China. And who pays for the new tariffs? You and me as both consumers (for tariff cost inflation passed through) and investors (as cash flows erode from tariff impact on companies from amounts they are unable to pass through). A tariff is a tax on your own citizens and doesn't accomplish much else aside from damaging your own economy and international relations. It's a monumentally stupid "tool".
I very much agree here. The NAFTA rework is the usual Trump PR hoopla (he even renamed it!), that is 99% hyperbole, and 1% substance. There's more political rhetoric in it, than substantive actions.The new deal isn't really that different than NAFTA. Auto provisions are actually detrimental to the US. Agricultural changes affect literally only $70 million of the Canadian dairy market (0.00003% of US exports - obviously completely inconsequential to the trade deficit). Canada succeeded in getting Chapter 11 nixed. There's pretty much nothing of any significance in the new bill that was gained.
Additionally, tariffs are a monumentally stupid "tool" to use to "leverage better deals" considering the fact that any country you impose tariffs on can just impose more on you. Obvious example? China. And who pays for the new tariffs? You and me as both consumers (for tariff cost inflation passed through) and investors (as cash flows erode from tariff impact on companies from amounts they are unable to pass through). A tariff is a tax on your own citizens and doesn't accomplish much else aside from damaging your own economy and international relations. It's a monumentally stupid "tool".
To the bolded: Exactly!If anything, Fed is doing this quite slowly actually (IMO). We've been out of recession for way too long now and we still have a LONG way to go to get to more (historically) "normal" rates. I think they running a chance of not getting there in time before the next recession.
Still, I leave it to them, to true professionals to decide. They handled Great Recession well enough.
I very much agree here. The NAFTA rework is the usual Trump PR hoopla (he even renamed it!), that is 99% hyperbole, and 1% substance. There's more political rhetoric in it, than substantive actions.
All fair points, Ludin.
I was O.K. with the modest rates and little inflation though, once I got acclimated to it. It seemed a calm and stable environment, no big ups, no big downs, and much of the country did well enough. It sort of reflected the "No drama Obama" ethos.
Concerning the rising dollar in your post though, that does run counter to reversing the trade deficit & expanding our manufacturing base.
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