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Crucial U.S. Stock Sectors Hit New Lows And That Implies That Broad Market Pullback Will Continue
Forbes ^ | 08/05/2019 | Jim Collins

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 today’s 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 ...


TOPICS: Business/Economy; Front Page News
KEYWORDS: boycotts; china; incometaxes; sanctions; stockmarket; tariffs; taxcutsandjobsact; taxreform; tcja; trade
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1 posted on 08/05/2019 1:06:17 PM PDT by SeekAndFind
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To: SeekAndFind

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.


2 posted on 08/05/2019 1:10:57 PM PDT by avital2
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To: SeekAndFind

“...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????


3 posted on 08/05/2019 1:12:27 PM PDT by JBW1949 (I'm really PC.....Patriotically Correct)
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To: SeekAndFind

I wonder where the “moonbeams, fairy tales and Fed dovishness” was when Obama was in office????


4 posted on 08/05/2019 1:13:54 PM PDT by JBW1949 (I'm really PC.....Patriotically Correct)
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To: SeekAndFind
Gnosticism.
5 posted on 08/05/2019 1:13:58 PM PDT by cowboyusa (America Cowboy Up)
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To: JBW1949

RE: Hmmm.....Wonder whose camp Jim Collins sits in????

Hard to tell from his background:

https://www.forbes.com/sites/jimcollins/2019/08/05/crucial-us-stock-sectors-are-hitting-new-lows-today-and-that-implies-that-the-broad-market-pullback-will-continue/#213aa91a5dc1

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.


6 posted on 08/05/2019 1:15:13 PM PDT by SeekAndFind (look at Michigan, it will)
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To: SeekAndFind

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.


7 posted on 08/05/2019 1:23:20 PM PDT by GOPJ (Trump needs to tell the FBI that 'hate crimes against White people' also need to be included.)
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To: JBW1949
I wonder where the “moonbeams, fairy tales and Fed dovishness” was when Obama was in office????

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.
Hmmmm.

8 posted on 08/05/2019 1:25:33 PM PDT by wardamneagle
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To: SeekAndFind

Are we having fun yet?


9 posted on 08/05/2019 1:26:09 PM PDT by babble-on ("moderation is best in all things" - Hesiod)
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To: SeekAndFind

Some things never change, and neither does their subject matter

Long term planning versus short term responses


10 posted on 08/05/2019 1:34:01 PM PDT by 100American (Knowledge is knowing how, Wisdom is knowing when)
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To: SeekAndFind

When the experts say sell, I buy on the lows.


11 posted on 08/05/2019 1:36:21 PM PDT by 1Old Pro
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To: SeekAndFind
The experts.

Paul Krugman, November 9, 2016.

BIG LOL!
 

12 posted on 08/05/2019 1:48:03 PM PDT by Governor Dinwiddie (In Italia i fascisti si dividono in due categorie : i fascisti e gli antifascisti. -- Ennio Flaiano)
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To: JBW1949

Funny. I got to wondering the same thing when I read that.


13 posted on 08/05/2019 1:54:59 PM PDT by aquila48
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To: SeekAndFind

Fed dovishness for the past 3 years.

...

Really?

They invert the yield curve and that’s doveish.

It looks like you found a real piece of crap to post on FR.


14 posted on 08/05/2019 1:56:37 PM PDT by Moonman62 (Charity comes from wealth.)
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To: JBW1949
Fed dovishness for the past 3 years

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.

15 posted on 08/05/2019 1:56:48 PM PDT by lasereye
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To: wardamneagle

Dow Jones/Obama last three years in office:

2014—————16,777
2015—————17,587
2016—————17,927

Dow Jones/Trump first three years in office:

2017—————21,750
2018—————25,046
2019—————25,858


16 posted on 08/05/2019 1:56:51 PM PDT by JBW1949 (I'm really PC.....Patriotically Correct)
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To: SeekAndFind

It seems to me that China devaluing their currency is an act of desperation. Not that they haven’t 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 don’t produce.


17 posted on 08/05/2019 1:59:32 PM PDT by noiseman (The only thing necessary for the triumph of evil is for good men to do nothing.`)
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To: lasereye

Correction: Fed raised it from .75% to 3%.


18 posted on 08/05/2019 2:01:17 PM PDT by lasereye
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To: JBW1949

I was gonna post about that.

What d.ck.

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.


19 posted on 08/05/2019 2:16:35 PM PDT by dp0622 (Bad, bad company Till the day I die.)
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To: dp0622

Yeah...The whole economy is in a totally different realm than when that a**hole was in office...


20 posted on 08/05/2019 2:21:17 PM PDT by JBW1949 (I'm really PC.....Patriotically Correct)
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