Dow drops 470 points

[transporter]

Why?? Because our President is a buffoon, that's why.

Dow drops 470 points on growing trade-war threat, biggest decline since early January

Stocks fell sharply on Tuesday after a top U.S. trade official indicated that higher tariffs on Chinese goods are coming later this week, disappointing traders who hoped President Donald Trump’s weekend tweet threat was just a negotiation tactic.

The Dow Jones Industrial Average fell 473.39 points, or 1.79%, to 25,965.09 after plunging as much as 648.77 points at its low of the day, while the S&P 500 dropped 1.65% to 2,884.05. It was the Dow’s biggest drop since January 3. The Nasdaq Composite dropped 1.96% to 7,963.76. All 30 of Dow components fell and all 11 S&P sectors traded lower in the broad sell-off.

For the dumbass who posted that their 401k was screaming higher...the DOW is lower today than it was on Jan 17, 2018, the SP500 is essentially flat vs Jan 26, 2018 (and lower than the end of Aug 2018), the NASDAQ is lower today than is was in Aug 2018.

MAGA

 

[Gilligan]

Did somebody post something?

 

[TCROW]

This explains why the buffoon is constantly on the Fed to ease — and why he thinks that putting loyalists on the Board of Gov/FOMC will help him. You see, he knows that these sorts of actions will send equities lower. He plans on continuing to double down on the stupid and he will need all the help that he can get.

There’s a reason he keeps touting the markets as a barometer for everything. The reality is that equities are trading on valuations far beyond those in 1929 and unlike the last 10 years, the fundamentals no longer support such valuations.

 

[Rommey]

...and the Dow is still up 6K from when Trump took office and is up 2,619 for the YTD.

Markets go up and they go down. I suspect if the Dow goes up by 500 points in a day, that we won't hear a peep from the OP.

 

[Yooper]

Dow drops 470 points on growing trade-war threat, biggest decline since early January

Why?? Because our President is a buffoon, that's why.

This is technically a non sequitur. Which is (also) a fallacy.

Link: "Non Sequitur"

For the dumbass who posted that their 401k was screaming higher...the DOW is lower today than it was on Jan 17, 2018, the SP500 is essentially flat vs Jan 26, 2018 (and lower than the end of Aug 2018), the NASDAQ is lower today than is was in Aug 2018.

That would be me (and maybe others). As others noted, I remain content balancing the risks against the gains. And I'm certainly pro-US enough to take some pain if that's what it takes to iron things out with China.

How 'bout you, sport? Or if not, how would you go about solving the China problem? I'd like to say I'll wait, but you've disappointed me too often for me to fall for your Lucy tricks any longer.

MAGA

Hard to believe, but I find myself in agreement.

In unrelated news, the temperature in Hell today dipped below 32F for a short time before recovering to its global warming usual high level.

--- End of line (MCP)

 

[Bird Dog]

You two were waiting three days for this......happy now....?

Less than 2% loss for the year on one day, over 28% gain so far for the year


What’s in your wallet?

 

[Toxick]

Dow drops 470 points on growing trade-war threat, biggest decline since early January

YES!

YES!

ALRIGHT!

If you think you're excited, feel these nipples!

 

[Yooper]

The unexpected Trump announcement, coming as markets had held out apparent optimism over a near-term resolution, roiled global markets, driving China’s399106, +0.06% Shenzhen Composite Index to a 7.4% loss, while the CSI 300 Index 000300, -0.71% tumbled 5.8% and the Shanghai Composite IndexSHCOMP, -0.61% lost 5.6% on Monday.

Domestic markets also got whacked, with the Dow Jones Industrial AverageDJIA, -1.79% , the S&P 500 index SPX, -1.65% and the Nasdaq Composite IndexCOMP, -1.96% on track for the steepest slides, at their intraday lows, since March 22, according to FactSet data.

However, Lee says there is reason to be a buyer in this downbeat environment.

He points to the fact that markets had been near records already, including the Nasdaq, which finished Friday at an all-time high, with the S&P 500 not far behind. The strategists said that even though some bears might argue that the heightened trade tensions represent an opportune period to take some chips off the table, or sell down holdings, it might be a lost opportunity for bulls because stock-supportive factors remain in force.

“Retail investors have been selling stocks and buying bonds so far in 2019. And hedge fund net long positions are among the lowest levels in 5 years. Hence, only the long only funds are fully exposed to equities. With so much on the sidelines, markets near highs, and with manager underperformance, we see this dry powder as a key dynamic,” Lee wrote.

Link: "Stock-market strategist says Wall Street should shake off Trump trade anxieties and ‘buy this dip’"

An opposing point of view. Take advantage of the "dip" and buy on Monday. Hmmm.

Or is it a clever bit of Chinese manipulation (given that the person making the recommendation is named "Thomas Lee" and is of Asian descent).

Click on over. Might be worth your time.

--- End of line (MCP)

 

[SamSpade]

And I'm certainly pro-US enough to take some pain if that's what it takes to iron things out with China.

What, do you suppose, is the long-term economic effect of NEVER getting tough with China?

 

[Kyle]

What, do you suppose, is the long-term economic effect of NEVER getting tough with China?

Eventual economic death.

 

[PeoplesElbow]

Money making time

One of my biggest holdings absolutely crushed earnings today.

 

[Chris0nllyn]

What, do you suppose, is the long-term economic effect of NEVER getting tough with China?

We do know the impact of getting tough with China. It's American consumers paying more for goods that are, and are not, subject to the tariffs. American consumers pay more for goods subject to tariffs. We're taxing ourselves and some folks are loving it because Trump says it's good and because they don't understand that we'll never be a manufacturing economy again. We're a service economy in a global marketplace that relies on procuring items from many different places across the globe.

 

[SamSpade]

We do know the impact of getting tough with China. It's American consumers paying more for goods that are, and are not, subject to the tariffs. American consumers pay more for goods subject to tariffs. We're taxing ourselves and some folks are loving it because Trump says it's good and because they don't understand that we'll never be a manufacturing economy again. We're a service economy in a global marketplace that relies on procuring items from many different places across the globe.

Pretty sure that would be the short term consequence of getting tough with China.
What do you think the LONG term effect of NOT getting tough with China?

PLUS -
I do not agree with the premise that "we'll never be a manufacturing economy again".
What nations ARE the manufacturing leaders? (Besides China).

Yep - the OTHER economic powers like Germany and Japan.
The European Union, as a whole, is ahead of us (comparisons with the EU are useful, as it compares with us in population and size and economic output).

I think somehow the idea has crept in that our manufacturing days are over are based on a lot of - I think - idiotic ideas that advanced economies don't DO the manufacturing stuff, just as agriculture based economies move up into industrial ones. But it is simply not true. Manufacturing powerhouses in the world fall into two types - ones like India and China which still rely on their vast pool of labor, and ones like Germany and Japan (and South Korea) that produce quality products with a lot of automation.