Posted on 06/19/2018 6:48:08 AM PDT by Red Badger
Stocks are off to another rocky start on Wall Street.
Trade war fears drove the Dow down 325 points at the open on Tuesday. That put it in negative territory for the year and on track for its sixth straight decline.
The Dow opened down 325 points on Tuesday, turning negative for the year and on track for its sixth straight day of losses.
President Donald Trump threatened Monday evening to impose tariffs on an additional $200 billion worth of Chinese goods if Beijing follows throw with its promise to retaliate against a previous round of US tariffs.
"Further action must be taken to encourage China to change its unfair practices, open its market to United States goods, and accept a more balanced trade relationship with the United States," Trump said in a statement.
There is no end in sight to the trade skirmish, as both sides continue to up the ante. The Chinese Commerce Ministry responded that it would "strike back hard" with "measures that match the US move in quantity and quality."
Investors had tried to brush off Trump's repeated threats against China, but retaliation has spiraled between the two countries. It has become impossible for the market to ignore the possibility of a trade war.
(Excerpt) Read more at money.cnn.com ...
BINGO
Short term pain for long term gain.
Years ago I went to Germany and a coworker requested that I buy some Hummel figures for her. To my and her surprise, Hummels were more expensive in Germany than in the United States. Level the playing field and prices, like water, will rise to their natural level.
As a side note, I am so tired of having to buy items made in China that frequently break after several uses, contain poor instructions, or are simply not up to par. For example, I have had to repair and/or buy several tire pumps that had only light use. A recent pool umbrella had such fine threads that screwing it into the base was a disaster. It is my hope that America will choose to compete on quality and people will buy American because of quality, not price.
>> This “fluctuation” looks like an emotional reaction to me <<
You could be correct. And time will tell whether such Trump’s erratic behavior creates lasting damage.
But for the time being, I think the most useful explanation is simply that the market was looking for an excuse to make a correction.
I didn’t buy that formula when I majored in Economics (1980 grad) and I don’t buy it today. Global flow of funds makes it nonsense. As does how we measure savings.
When Savings is defined as After-Tax Income minus Expenditures it means not counting:
1) Pre-tax savings vehicles like 401K’s
2) The principal payment portion of the mortgage payment, which is SOLELY counted as an Expenditure
3) Asset movements, up and down
The Chinese are not free market capitalists, it’s pretty stupid to include them in your equation. They report WHAT THEY WANT TO REPORT, we have no idea what their true numbers are. What we DO KNOW EXACTLY is our trade deficit with them.
No, they can not, they utilize multiple statistically correlations and hope they stay accurate. The models are adjusted when the previous coding no longer produces profits. What they do attempt is to rapidly trade larger amounts and hope to capture a penny or even less if that’s available and do so multiple times during the day.
Slap a transaction tax on intra-day trading and watch how fast the volumes on the exchanges shrivel up. No transaction fee if held 3 days, and scale it up to something that hurts if you close the same day. If you are a day trader you get maybe three free per day without the fee.
These machines are DANGEROUS and combined with the ETF’s that allow shorting without an uptick will one day cause an event we don’t want to contemplate. I was a trader at Drexel and the last 90 minutes of the crash of 1987 will NEVER GO AWAY from my memory.
I want it to drop by half for just a day or so (just as long as it takes for me to buy). I am kinda sick like that. :)
I bought some US Steel just after the opening bell this morning.
I expect it will be back up in the near future.
The difference between me and professional traders is that their entire careers hang in the balance with every decision.
Me? Not so much.
On top of that, I have watched Trump for a long time and have a very clear understanding of how he operates.
Trump's style looks chaotic, but that because he doesn't show his opponent (or us) his negotiating strategy.
Trump is a cool customer.
Local gas prices hit 3.07 locally last Friday and Trump throws a barb at OPEC.
Today I filled the tank at 2.87
Spank em Donald. LOL
Must be election season, the MSM will now talk the economy into the toilet if they can.
Thanks for that
FReegards
Those that don't agree with POTUS would like the gutting of the USA to continue.
Now that’s cool.
If I were doing that, I would zero in on the truck traffic from a company that I visit that makes the rubberlike pads used to print boxes and containers.
>> I didn’t buy that formula when I majored in Economics (1980 grad) and I don’t buy it today <<
If you want to reject the way every major government, every major international economic institution and every recognized national income expert defines the basic components of GDP, GNP and related measures, then go ahead. It’s a free country.
>> The difference between me and professional traders is that their entire careers hang in the balance with every decision <<
Methinks not.
As far as I’ve ever been able to tell, a professional trader is gonna be judged by the annual rates of return on his portfolio over a number of years.
So show me a guy who can beat the average rate of return on the S & P 500 over a period of years, and I’ll show you a man whom Wall Street will respect as a genius extraordinaire.
(But almost nobody is in this category. That’s why Index Funds consistently out perform managed mutual funds. You can look it up.)
If you want to reject the way every major MEDIA EXPERT, every major POLITICAL THINK TANK and every recognized national POLITICAL EXPERT defines the basic components of ELECTABILITY, HOW POLITICAL CAMPAIGNS RUN and related measures, then go ahead. It’s a free country.
I was right then too . . .
I was speaking “tongue in cheek” but, that said, a trader (there are many types) is not a portfolio manager.
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