Posted on 03/22/2018 2:49:13 PM PDT by reaganaut1
Trade war fears that have roiled the markets for two weeks intensified Thursday, sending the Dow Jones Industrial Average tumbling more than 700 points and adding to concerns that stocks could be headed for a larger reckoning.
Thursday’s selling, which sent shares of manufacturers, aluminum producers and steelmakers sharply lower, marked the culmination of months of growing investor anxiety over the course of U.S. trade policy. It came at a time when many say the market was already under pressure, gripped by fears over rising interest rates and sliding technology shares.
Trade tensions ratcheted higher, as the Trump administration said it would impose tariffs on tens of billions of dollars of Chinese imports on top of taxing steel and aluminum imports—provoking the ire of officials from China to Germany to Mexico.
Investors had widely brushed off concerns about trade fears and rising interest rates until earlier this year. But signs that interest rates will rise more quickly than expected, along with the Trump administration’s aggressive push to narrow the U.S.’s trade deficit, drove a resurgence in volatility and renewed worries among investors that the nine-year bull market is losing its momentum.
“The stakes are getting higher and larger, and that’s what the market is thinking about,” said Ken Taubes, U.S. chief investment officer at Amundi Pioneer. Investors are concerned that China will retaliate, leading to “tit-for-tat” escalations of policies hindering trade, leading to slower growth, he said.
The Dow industrials fell 724.42 points, or 2.9%, to 23957.89, posting their biggest one-day percentage decline since Feb. 8, when they fell into correction territory for the first time in more than two years. The S&P 500 fell 68.24 points, or 2.5%, to 2643.69, sliding back into negative territory for the year, while the Nasdaq Composite lost 178.61 points, or 2.4%, to 7166.68.
(Excerpt) Read more at wsj.com ...
Of course it has nothing to do with out of control spending.
Not much of it. The Fed increases have been expected and a lot of it has already been factored in.
You're a parasite
So how did the Chinese and others accumulate so many dollars that they are using to buy American real estate that we can’t afford? Simple, consumers spend their dollars on the cheaper imports. They buy Chinese goods, not American because they are cheaper. This causes an imbalance of trade in our marketplace in favor of foreign goods which can be produced with cheaper labor and resources.
A fair tariff on imported goods means our companies can trade with foreign companies and we get to keep more of our dollars at home. Thus our economy expands, not theirs. As our economy expands, we have more dollars to buy real estate and other expensive things.
OTH, domestic companies can move offshore to reduce their costs of labor and resources in order to get a bigger share of our consumer dollars. But a fair tariff will negate this advantage forcing some companies to repatriate their companies and dollars back to America.
If the noose fits wear it.
Look what you’ve done...... you are killing America
How’s the credit market opening that the Chicoms promised coming along?
A family tradition for you no doubt
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