and that is with a trade war going on. it’s genius on the part of DJT; pump up the economy, and then level the global playing field.
he couldn’t have gone after china on trade with anything but a very strong economy.
they aint gonna cool the talk- they have nothing else to run on, and the rino never trumpers want trump to lose- so they will keep clutching the pearls and falling into feinting couches
Its not about what’s happening in the US.
The strong dollar threatens to bankrupt the eurozone.
A contagen there would come to the USA.
The dollar need to come down. Any way will do it. By lowering interest rates. by more quantitative easing. by the lowering taxes by borrowing more money to pay for infrastructure.
Summer months are always bumpy months for the market the big players do vacations.
To me the best analysis recognizes we are at a point where there is a general divergence between the performance of the domestic economy and Wall Street, in the immediate sense.
Many major U.S. companies do not have merely high revenues from sales outside the U.S., some have sales outside the U.S. that are significantly greater than their sales in the U.S. While some do have manufacturing in the U.S. and their exports do help the U.S. domestic GDP, some have as much or more manufacturing outside the U.S. and remit little of their foreign revenue back to the U.S. Their global performance might be reflected in their stock market performance on Wall Street, but it - their performance - may be less reflected than that in the U.S. domestic economy itself - because their total business has a bigger foreign footprint than their U.S. footprint - in terms of their employees, manufacturing, operations and revenue.
And while there are a few global companies with an outsize U.S. manufacturing presence - like Boeing for instance, the overall big stock market indexes are weighted by market value towards the biggest companies, in terms of revenue, and those companies are predominately global companies, and many of them have foreign impacts larger than their direct impact inside the U.S. economy (many never remit a dime of foreign earnings back to the U.S.).
So all in all, Wall Street today can jump up and down on global events, but more and more Wall Street is not main street.
HOWEVER, who in the U.S. IS impacted MOST by U.S. companies global performance as that performance is reflected in the stock market? Anyone in a retirement plan and/or investing for retirement. Why such a group? U.S. insurance industry and the institutional investors for retirement plans hold a much bigger percent of U.S. equity securities (stocks) than do foreign holders or even U.S. individuals.
So the biggest impact of U.S, global companies global performance is more in the area of future value of invested savings than in what is happening now inside the domestic U.S. economy. That can impact the domestic economy IF it is a prolonged global slowdown and not a temporary blip.