This is not going to bode well for Trump. The volatility started with tariffs. Now the markets have further spun out of control because of the general perception that the president is too indecisive and unpredictable. Markets hate instability and Trump, so far, has done little to reassure them. One other thing to consider, this all happened under a GOP controlled congress.
There is still time for Trump to recover. But more tariffs and public yelling at the Fed isn't going to get that done.
IMHO this is retribution from the powers to be that we voted for Donald J Trump. We did not vote for one of their “approved” candidates. They are doing everything they can to take Trump down. They being the establishment who are having their gravy train interupted.
Two major stock indexes headed toward their worst Christmas Eve of trading ever on Monday, as the S&P 500 pushed to the cusp of a bear market.
The Fed was wrong to raise the rates. Everyone says so.
Lol. That's the agitprop theme for the moment.
I won't dispute that.
But I will say that this sort of Wall St panic often happens after an election in which the Democrats seize the House. I remember it didn't go well after 2006 when Democrats won. Now in 2018, Democrats regain the House, and the Dow plunges.
Yes, technically, the GOP still is in control. But the Dow see the future.
All I want for Christmas is good buying oportunities.
It might easily be various funds locking in huge gains as they do every year at this time. If so, they will buy back the same stocks next year.
Speaking of panic, early in my career I was working on a time sensitive high visibility project. My boss came by and asked how I was doing and if he should panic. I turned to face him, squinted one eye closed and considered. After a full minute I said, “Yeah, go ahead and panic. You shouldn’t leave it to too late.”
It is the very low interest rates that drove the Stock market rise. The deep state is now increasing interest rates to make it dive. The action is designed to hurt Trump.
Swampy Powell needs to go. Now.
Has nothing to do with tariffs. It is about to destroy trump. This deep state government is evil. Red jacket time?
I smell Soros.
My take is that the ‘smart money’ did not like Brexit chaos, the Kavanaugh scourging, the Democrats taking the House, and other political screw-ups.
The ‘smart money’ has been busy shorting the equity markets since October 1st, while the average joe is told to not worry.
There is a political war between the Leftists and the Conservatives and markets do not do well during wartime.
I agree. Trump shouldn’t be blustering on about interest rate increases. He should let the fed keep raising the lending rate until the money supply actually meets the demand for it. Presumably, that would also be the same interest rate from which banks will profit the most and at which inflation = 0.
The only problem our economy has is the Fed. They don’t have a feel for the Market, they don’t understand necessary Trade Wars or Strong Dollars or even Democrat Shutdowns over Borders. The Fed is like a powerful golfer who can’t score because he has no touch - he can’t putt!
Banks reassured everyone there is plenty of liquidity for lending...of course, at now higher levels of interest. Bwahahahaaaaa.... This is so funny.
If Trump got rid of most of the tariffs that he imposed — he can leave them on China, Mexico and other enemies, for all I care — these stock plunges would reverse themselves, for the most part.
Really?
” The volatility started with tariffs. Now the markets have further spun out of control because of the general perception that the president is too indecisive and unpredictable.”
That’s an idiotic analysis.
The Fed is hiking interest rates, with no end in sight.