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.
It will become a buying opportunity at some point, investors should have their shopping lists ready
It became a buying opportunity by the end of the day, for some.
P/E ratios are very high but earnings are a lagging indicator.
What will earnings be in 6 months? A year?
I would be buying dividend paying companies very soon.
From the time of the 270th electoral vote for Trump untill now, "The Democrat Party is nothing but flailing, lies, and gnashing of teeth at this point. "
HA HA HA
Soros is stirring up the "Palestinians" antagonizing Israel for the time being. James Woods has Hollywoodland under control. We need to get the heck out of Syria unless they use chemicals again, then we need to nuke them and let Russia have the scrapes. Afghanistan? heavy bombardment and numerous mushroom clouds. We need to be hearing horror stories from the survivors of the US killing all the bad guys yet showing compassion to the innocent. I think Nicki Haley has the UN finally convinced the the 80% of the revenue it received from US is being drastically reduced!
I think this and maybe one more price flurry and the US market is gonna soar straight and steadily upward until Donald Trump releases the reins of power in this country. This is what I told the wife the other day, and it is what helped her to finally reorganise her 401k. 1st time in 10 years. :)
It’s the financial equivalent of eating popcorn.
The FED is deeply entrenched in the swamp.
ANY speculation until the Cankle gets jailed will be FAKE NEWS!
That is the effect not the cause
Is it a coincidence that the market went south on Friday when the memo came out?
I was talking to a Shiller-CAPE devotee yesterday who told me that the debate in the value community was over whether the market was 30% overvalued, or 50% overvalued. But that’s what makes horseraces. When the market really was crashing in 2009 these were the guys who had dry powder and stepped in to buy at the lows.
Strange, indeed. I’d read here, yesterday, that NPR WAS essentially blaming Trump...and that the hosts sounded giddy.
Maybe someone explained how the market works, to them. Maybe Mark Cuban calmed them dow.n :-)
Good to know they got it right, finally.
Good to know they got it right, finally.
I have a couple of dozen stocks I look at and they are mostly in the red these past 3 trading days.
I spoke to soon.
My NVIDIA stock which had been red like the others is now up about $3.50 and climbing.
https://finance.yahoo.com/quote/NVDA
Markets rise. Markets fall.
Some of it is profit taking
Chillax
Well he did brag they are up. So wouldn’t it be fair to say oops when it’s down?
Does anyone remember the shock breakers that were put in place after 9/11? They were supposed to stop trading after a certain percentage fall or something. I think they went into play a few times during GW and Obama’s terms. I believe that this time someone (who?) decided to let it free fall.
Yesterday, NPR and the rest of the Fake Media are all beside themselves - with glee - over the falling market. Blaming Trump.
Last night, on FoxBiz, the hosts mention (at end of one of their shows) how odd it was that Yellen would even mention the market needing a correction...on HER WAY OUT THE DOOR.
Then, this morning, NPR now (correctly) saying that '...it is 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...'
Is NPR's sudden tune change a coincidence? I think not.
Fake News NPR not wanting Yellen to take the blame for this fall.
My 2¢
It hasn’t gone down enough in one trading day. These are ‘normal’ corrections. We’ve had a huge run up under Obama and Trump.
NVDA 222.35 +8.65 : )
Bfl
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