Skip to comments.Crucial U.S. Stock Sectors Hit New Lows And That Implies That Broad Market Pullback Will Continue
Posted on 08/05/2019 1:06:17 PM PDT by SeekAndFind
The U.S stock markets are being absolutely pummeled today as the trade tussle between the Trump and Xi administrations escalates. Against this backdrop it is imperative for investors to focus on the names that are not working as harbingers for further downside. Yes, Microsoft, Apple and Amazon are all down at least 2.5% in todays trading, but anyone who bought any of those tech titans on August 5, 2018, still has a nice unrealized capital gain.
It is in the names that are hitting new 52-week lows that we can see the seeds of panic. Contagion is a real thing in markets, and the drop in China's renminbi versus the dollar has destroyed trillions of dollars in global equity market capitalization today. Just as importantly, declines in particular sectors and bellwether stocks in those sectors can cause contagion in equity markets. This is especially true for the U.S. market, which has been soaring on a steady diet of moonbeams, fairy tales and Fed dovishness for the past 3 years.
(Excerpt) Read more at forbes.com ...
uh people rolled up some pretty big profits since Christmas. looks to be some taking of some money off the table until there is better visibility on China trade situation.
“...the U.S. market, which has been soaring on a steady diet of moonbeams, fairy tales and Fed dovishness for the past 3 years...”
Hmmm.....Wonder whose camp Jim Collins sits in????
I wonder where the “moonbeams, fairy tales and Fed dovishness” was when Obama was in office????
RE: Hmmm.....Wonder whose camp Jim Collins sits in????
Hard to tell from his background:
I have researched stocks for 27 years, starting fresh out of college at Lehman Brothers and then moving to Donaldson, Lufkin and Jenrette. At DLJ I was a Senior Analyst following US auto parts companies before relocating to London to originate DLJ’s European Automotive coverage and then moving to UBS. I had a decade of sell-side experience, attaining the CFA designation. After years of growing my own portfolio, I founded Portfolio Guru LLC three years ago. I construct portfolios for my clients on a fee-only, separately-managed basis and write about small stocks in my newsletter, MicroCap Guru. My work is also featured on Real Money, the premium portal of TheStreet.com. The Sanskrit root of “Guru” combines “dispel” and “darkness.” I invest solely for individuals, and for them I try to dispel the darkness that emanates from Wall Street. My friends enjoy poking fun at my nom de stock, and when I am not Guru-ing, I enjoy spending time with them, outdoor activities, and sampling NYC.
I thought liberal ‘elites’ would crash the markets - I just thought it wouldn’t start until after Christmas.
The only way to save our culture to split with liberals... they get the liberal states - we get the conservative states. Two countries - two cultures.
For 8 freakin years....rates were flat-line.
And China? If nothing happens with trade,
where are we ? Right where we were at the start.
Market seemed to not care for decades about trade imbalance.
Are we having fun yet?
Some things never change, and neither does their subject matter
Long term planning versus short term responses
When the experts say sell, I buy on the lows.
Paul Krugman, November 9, 2016.
Funny. I got to wondering the same thing when I read that.
Fed dovishness for the past 3 years.
They invert the yield curve and that’s doveish.
It looks like you found a real piece of crap to post on FR.
The guy's a pathological liar. They raised the discount rate from 1% to 3% since election day 2016 before undoing the last quarter point increase. They kept it at a microscopic 0.5% for 7 of Obama's 8 years.
Dow Jones/Obama last three years in office:
Dow Jones/Trump first three years in office:
It seems to me that China devaluing their currency is an act of desperation. Not that they havent kept the Yuan artificially low in the past in order to create incentive to buy their goods, but to do so in order to offset U.S. tariffs seems to be a game they are destined to lose. All Trump has to do is raise the tariffs even further. If China follows suit with more currency devaluation, good luck to them trying to buy food or any other necessities they dont produce.
Correction: Fed raised it from .75% to 3%.
I was gonna post about that.
Millions more jobs and better pay had nothing to do with it.
P/E ratio isn’t even that high compared to history.
But let’s not let facts get in the way.
Yeah...The whole economy is in a totally different realm than when that a**hole was in office...
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