Posted on 02/06/2018 5:28:24 AM PST by EBH
Yesterday, as I sat down from a long day of being disconnected from the electronics of the world, my initial reaction to the market drop was gut wrenching to say the least. Acknowledging the news, I started to ponder why such a devastating drop. While percentage wise, based on the current market value this really appears to be more like a correction, but what exactly is it and why?
I am no financial guru, just a little guy on the outside looking in. But a market losing confidence is a key indicator for a crash. Just before the State of the Union speech we saw the market start to drop and it has essentially continued to drop since then. I can only consider one bit of news so devastating in the world of good news, that may be causing this current correction. A lack of confidence.
A lack of confidence in the American system of government. As the investigation of President Trump, the dossier, and now the memo continues the markets and the world is watching. As conservatives cheer for the draining of the swamp, the corruption is eating away at the underbelly of our economics. Last week we commented that the market drop before the State of the Union was due to profit taking by liberal democrats to make President Trump look bad. Perhaps, it was more along the lines of profit taking, due to the Nunes memo being released.
The bankrupt party of the Democrats and their illegal attempt at rigging a Presidential election is having devastating consequences a year later. It is this undercurrent that must be dealt with swiftly at this point. The time of the Democrat Party power is over. The longer congress drags out these scandals, the longer Mueller is allowed this free rein investigation, into an allegation founded on fake allegations used to rig an election, the more confidence in America erodes.
I don't know how President Trump will do it, but I voted for him for times like these. I knew a market crash would eventually happen as Obama had inflated the bubble and inflated it some more. The bubble alone would cause great harm to our country and President Trump has set in motion practices to mitigate as much of it bursting as possible through tax cuts and bringing work home to America.
The question remains though as to the effect the democrat corruption in Washington DC will have on confidence in America around the globe. Conservatives and concerned citizens took back the Republican Party as it veered off course, it is partly how we got to where we are today. I don't see the Democrat Party being able to do that. We watched them rig their own primaries and none could stop it from within.
The Democrat Party is nothing but flailing, lies, and gnashing of teeth at this point. Sure, some conservatives will cheer this view, maybe even eat some popcorn as they watch the demise. But, we're in dangerous territory as a Nation. Powerful people are behind these democrats and their followers take their marching orders very well. Unlike the Republican's effort as a grassroots movement, Democrats still hold the mainstream media, schools, and celebrity.
Desperation makes for dangerous times.
The “Market” can be crashed with a few buttons. This may very well be a plot to drain Trump’s influence. Nothing has worked so far, so the shadow money-holders may be taking one for the Shadow Team to put him in his place.
There is an article on Drudge “The FED wants Blood?”/ The secret societies and globalists want to take down the will of the American People, Donald Trump. They destroyed his most obvious success. Their profit taking gives them large amounts of money to fight Trump.
The Market was at records high, so the corrections will be larger too. Of course the media wants everyone to panic so they can blame Trump...
Markets go up and markets go down. Ditto individual stocks and commodities and bonds. Get over it. Either you accept risk or don’t play. Quit whining.
An enormously expensive market does not need a catalyst for a drop. It just drops. This thing has been a one way bet since April, and it was overdue for a correction and we’re getting it. Not the end of the world unless one was playing over his head.
I have a significant amount of money in the stock market, but I reacted to the recent drop (which I see as a market correction) the same way I react when an online estimate of my home’s value drops from one week to the next - with complete indifference.
I’m not planning to sell my stocks or my home for years. What I care about is the true underlying value, and that does not change for either my home or my stocks just because of a panic, profit-taking, or other short-term fluctuations. Watch the market for the next month, year, eight Trump years. The long term is what matters.
Is this almost expected? I mean to sustain growth in the markets as we have seen in the last year or so is impossible. Add into the mix of rising wages people begin to speculate about interest rates rising as well. In the end what make the market tick is companies making money and investors wanting to get in on the action. I do not foresee very many companies nosediving anytime soon. All the moves that Trump has initiated will stimulate this economy further... that in turn will keep the markets profitable. Yea this was a huge haircut but the underlying conditions of the economy will prevent this from being a ‘crash’. Biggest point loss ever and Ive seen almost no ‘chicken little’ BS from the MSM. You have the usual liberal pissants who will try to score their points on this drop but I think even they know this doesnt spell disaster... which as we all know the liberal media thrives on.
The Fed pumped a trillion dollar a year into the stock market to prop up prices during the Obama regime.
That was a trillion dollars per year of air.
We always knew there would be a correction.
Or did you miss that?
He wasn’t whining. He was commenting. And boy you sound like a real ass#### :-)
NPR this morning was even saying this does not reflect any “news” or economic bad news in general. They saw it as a blip and probably brought on by profit taking, a “correction”, and fears that the economy is so good that it is increasing fear of higher interest rates.
The fact that they are not blaming Trump is perplexing. There is a lot about this that doesn’t make sense. It would cause me to get out if I was in.
I saw this morning that the global makets lost $4T in value in the last week.
I want to join your Shadow Team if they can afford that kind of loss "for the team".
The primary cause is a lack of supply, all this demand is creating shortages, basically the economy is too good.
Yeah the MSM drama does not help; some idiot reporter on NBC just said the market closed at a record low (uh, wouldn’t a record low be ZERO?) - of course she meant a record point drop which is not even a record percentage drop. Gag.
It’s possible, it’s possible... that it was for fear of America turning on itself. For fear that Democrats will finally manage to topple Trump.
If so, even that fear has to meet reality one day. Trump is a high stakes venturer. Four bankruptcies didn’t faze his larger empire. Any successful GOP president at this point requires that sort of chutzpah to make a way. Perhaps the time will be right for the calmer Mike Pence in eight years.
I’ve been hearing that the market was way overdue for a correction.
It is well known that the stock market is subject to “irrational exuberance” and inevitable corrections. Clearly the election of an overtly capitalist President to replace a socialist President who disdained small business entrepreneurs, loved regulations and taxes, and saw economic growth as environmentally harmful created joy and confidence in investors. The beneficial result of Trump’s economic policies remains especially for job creating and wealth creating small businesses and entrepreneurs. Yet the massive Federal, State, and local debts remain. There are huge unfunded liabilities and the Democrats are always working to weaken the economy and culturally transform America. It is a long battle that will not follow a straight,comforting course.
Precisely
Calm down, corrections happen all the time.
This market was overheated, because of a lot of media hype and too many people got greedy, and bid up the prices beyond where they should have been.
When big traders realize that, and sell their stocks to lock in the profits, the resulting big trades can move the market down. Then, other computerized trading systems recognize the fall and decide it’s time to sell too - before long, there’s a cascade down...
...until people decide stock prices are attractive again, and start buying, and prices go up again.
This is always how the market works, it’s just accelerated now with these big computer programs that move instantly. Long-term trend is still up.
Markets don’t like uncertainty. The memo revealed high-level corruption with long-term implications. Nor does it help when Henny Penny Pelosi runs around saying things like “Constitutional Crisis.”
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.