Posted on 09/20/2021 5:48:47 AM PDT by John W
U.S. stock futures began the week deeply in the red as investors continued to move to the sidelines in September amid several emerging risks for the market.
There were a number of reasons for the sell-off:
Investors fear a contagion sweeping financial markets from the troubled China property market. Hong Kong equities saw a big sell-off during the Asia trading session on Monday. The benchmark Hang Seng index plunged 4% with embattled developer China Evergrande Group on the brink of default.
The Federal Reserve begins a two-day meeting Tuesday and investors are worried the central bank will signal it’s ready to start pulling away monetary stimulus amid surging inflation and improvement in the job market.
Covid cases because of the delta variant remain at January levels as colder weather approaches in North America.
September has the worst track record of any month, averaging a 0.4% decline, according to the Stock Trader’s Almanac. History shows the selling tends to pick up in the back half of the month.
Investors are also concerned about brinkmanship in DC as the deadline to raise the debt ceiling approaches. Congress returned to Washington from recess rushing to pass funding bills to avoid a government shutdown.
Stocks linked to global growth were down the most in premarket trading Monday. Ford and Carrier Global lost more than 3%. General Motors and Boeing fell about 2% each. Nucor steel shed 2.8%
(Excerpt) Read more at cnbc.com ...
This is a CHINA related downdraft. China property firms are teetering over the abyss.
China set the trap, and the West fell for it.
It’s Sept. Not pretty
Adam Shiff has this theory: The fed has them convinced that they will use their “tools” to rein in inflation and this is only temporary. However, once their tools don’t work (they really don’t have any tools left), all bets are off. Gold (and other commodities) could go insane if money supply fueled hyperinflation sets in.
There are youtube videos predicting serious inflation and there are videos predicting deflation. I think we’re definitely looking at, at the very least, stagflation. It’s why I’ve built up my “stuff” ownership the last year. They just opened a harbor freight by my place and I’ve stocked up. We’ve got four cars in good repair, the 30x60 shop building with wood stove, 32 acres with two streams, lots of home canned foods, half a beef in a freezer, all the “tools” we need. Supplies for several oil changes for the vehicles, a 1960 tractor with “robust” electrical system. The only thing I have to fear is power being cut. :)
By son visited the property for the first time and after walking the whole thing he said, “Shoot, you could make this place a family compound.” It wasn’t our main intention when we bought the place two weeks before Obama was elected, but it was on my mind. Who knew it would get this bad, this fast? Well, the Lord did.
Back just before Trump was elected I thought the country had five to 10 years left. Now I think it’s one to three. And not to put too fine a point on it, but I believe this is an international thing, not just the US. Australia has become the 21st century’s east Germany. Their “wall” is the ocean.
Good post.
Buying opportunities
I expect the fed steps in to backstop and stabilize today but when the Asian markets open tomorrow who knows. Could be a waterfall.
-20%, pick up some.
-30%, pick up a bunch.
-50%, blow the wad, ‘cept a cash cushion.
It goes up, it goes down. Commentators adapt a sad face when it goes down, and look cheerful when it goes up. That must be tiring for the face muscles.
It’s amazing how market commentators write a lot of words but provide no new or substantial information.
Well you are right it has to crash to bring in the new system whether it be the reset or the QFS. Depends on who wins this international war that is going on behind the scenes.
It had to happen.
How low will it go? 10% is about 30,000 of course just about wiping out all the gain of this year. Covid did more than that of course and then before that it was the first part of ‘18 over china jitters.
Covid has played havoc with economies, how could it not? The reckoning has probably finally come to the spending and people not working.
It had to happen. Elections also have consequences and now this one is.
It is almost entertaining to watch the commentators and “experts”. They could have a competition for the most creative “reason” for the market to move.
Not happy about it but this is the way it goes. Someday it will come back but not now. Not every season is one for salad days. Best to have some investments that ride these times out to live on and pull in your horns on spending until it is over.
The salad days are fun, these are not of course.
DJIA down 905
NASDAQ down 487
3:23 PM
Biden is ridin’ the US economy into the sunset with all his “Mandates”, and the Pelosi’s are looking for buying opportunities.
Not a happy time.
Another thousand or so to go.
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