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Stocks may still be underestimating the risk of a blowup in trade tensions
Market Watch ^ | July 3, 2018 11:57 a.m. ET | Ryan Vlastelica

Posted on 07/03/2018 8:33:24 PM PDT by cba123

For months, trading in the U.S. stock market has been largely dictated by trade policy, as investors weigh every seeming escalation of tensions between the U.S. and its major trading partners, and attempt to suss out what potential changes could mean for the global macroeconomic environment.

So far, the impact on equities hasn't been too severe. While some sectors have seen significant hits, like the multinational industrial and material industries, the broader market has been essentially rangebound for months. The Dow Jones Industrial Average DJIA, -0.54% and the S&P 500 SPX, -0.49% have been volatile of late, but they remain not too far from where they were before the issue flaring up, as the headwind that a trade war would represent is weighed against its likelihood, and the tailwinds that come from positive factors in the economy, such as improving corporate earnings and a strong labor market.

Over the past several months, President Donald Trump and his administration have announced several tariffs and threatened many more, and these have often been met by retaliatory measures from other countries. According to Morgan Stanley Wealth Management, Wall Street analysts have generally decided that "all told, the implications for the economy and markets are modest and not likely to shave more than a few tenths of a percent off global and regional GDP growth."

Lisa Shalett, the firm's head of investment and portfolio strategies, said that while she didn't dispute this math, such analyses may not fully account for the risk that an escalation in trade tensions could represent for the global economy.

(Please see link for full article)

(Excerpt) Read more at marketwatch.com ...


TOPICS: Business/Economy; Foreign Affairs; Politics/Elections
KEYWORDS: america; china; europe; trade
For the entire last generation and a half, everyone has been selling out America.

Trump is standing up now.

It is about darned time.

1 posted on 07/03/2018 8:33:24 PM PDT by cba123
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To: cba123

https://www.marketwatch.com/story/stocks-may-still-be-underestimating-the-risk-of-a-blowup-in-trade-tensions-2018-07-03?siteid=yhoof2&yptr=yahoo


2 posted on 07/03/2018 8:33:59 PM PDT by cba123 ( Toi la nguoi My. Toi bay gio o Viet Nam.)
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To: cba123

Market watch is pure drivel


3 posted on 07/03/2018 8:38:52 PM PDT by Professional
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To: cba123

You got that right!

And, I think most Americans understand that.


4 posted on 07/03/2018 8:39:43 PM PDT by Professional
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To: Professional

I don’t know. I just got the link. But it seems relatively mainstream.

What sort of criticism do you level against Marketwatch?

Do you have an example, you are basing that criticism on?


5 posted on 07/03/2018 8:41:54 PM PDT by cba123 ( Toi la nguoi My. Toi bay gio o Viet Nam.)
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To: cba123
Give me a break .

This website is owned by a HUGE Dem operative / Trump hater .
The owner is also Big
Clintonite .
You did not know that ?

Its pure Left wing talking points poorly wrapped in some market stuff .

6 posted on 07/03/2018 8:49:32 PM PDT by ncalburt (Gop DC Globalists out themselves ever time)
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To: cba123
It appears to me Market Watch is trying to incite a stock market panic.

Are they 'neverTrumpers'?

7 posted on 07/03/2018 8:49:56 PM PDT by yesthatjallen
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To: cba123

“... Dow Industrials -0.54%; S&P 500 -0.49% have been volatile ...”
-
Seriously?
!/2 of 1%?
OMG
ITEOTWAWKI


8 posted on 07/03/2018 8:52:46 PM PDT by Repeal The 17th
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To: ncalburt

Nope. Never knew that.

Thanks.


9 posted on 07/03/2018 8:55:05 PM PDT by cba123 ( Toi la nguoi My. Toi bay gio o Viet Nam.)
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To: cba123; Professional

I am going to agree with Professional that MarketWatch is largely drivel. By drivel I mean the reporting that is done is not actionable, or is done sufficiently after its occurrence that acting on it would not be to your advantage. On that basis, it is drivel.

However I will say, that a thing happened today that could have some serious implications. I do not have the full story, but apparently some Chinese company was accused of stealing some technology from Micron Technology (symbol mu) and as retaliation for the accusation of stealing that technology China closed down part of Microns operations in China. Now if this is true, this is an escalation in these trade Wars. And the market is now reflecting a certain element of fear that China, if they really wanted to get nasty, could shut down or even nationalize U.S equity chip-making plants and equipment located in China. And that could be one big smelly deal. I did not read that in MarketWatch. I read that in the $3 drop in Micron stock price. This news is what caused the abrupt turnaround in the stock market today which was going along fairly well fairly green and then flipped fairly negative. As I said this is a developing story so do not quote me please on details, which are still being ascertained. But I did hear that Chinese authorities were showing up at Micron headquarters and exerting power of some kind. Type, unknown.


10 posted on 07/03/2018 8:58:46 PM PDT by Attention Surplus Disorder (Apoplectic is where we want them)
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To: ncalburt; cba123
I will go with ncalburt.

Market watch is, and has been for a long time, lib pukes.

Their entire market report is slanted leftist dribble.

11 posted on 07/03/2018 9:01:36 PM PDT by going hot (happiness is a momma deuce)
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To: going hot

Drivel as well!


12 posted on 07/03/2018 9:01:57 PM PDT by going hot (happiness is a momma deuce)
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To: cba123

Was this ghost written by Neil Cavuto?

I watch that boob, everyday, bring down the market by his talking about the economy in a negative, the potential horror of tariffs, and panelists with the same dreary forecasts, anything he can do to have those numbers go down.


13 posted on 07/03/2018 9:02:35 PM PDT by Maris Crane
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To: Maris Crane

Well, that makes sense, because all he did for years is talk up the outsourcing and global economy, as did his fine panel of capitalist wizards.


14 posted on 07/03/2018 9:06:26 PM PDT by crosdaddy
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To: Repeal The 17th

I’m with you.

The markets are still very tight even with the move after Trumps election.

There’s so much institutional money employed using algo’s at virtually all risk levels that they have not only squeezed out volatility but have also priced out the risk/reward equation to remove the reward.


15 posted on 07/03/2018 9:07:17 PM PDT by Zeneta
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To: cba123

Equally probable headline:

“Stocks may still be overestimating the risk of a blowup in trade tensions”


16 posted on 07/03/2018 9:08:18 PM PDT by Chaguito
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To: crosdaddy

I call him “Mr. Both Sides do it”, because he NEVER misses a chance to say that.

First of all, I think he is furious that President Trump has not agreed to be interviewed by him. He is so proud that his show is the only one where dems will appear. He is the epitome of “fence sitter.”

And I have told him that in numerous emails. He doesn’t have the guts to take a side/stand.


17 posted on 07/03/2018 9:20:50 PM PDT by Maris Crane
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To: cba123

Market Watch is like Bill Maher - hoping for something bad to happen so they can show us they are as morally right as they are market wrong.....


18 posted on 07/04/2018 3:47:57 AM PDT by trebb (Too many "Conservatives" who think their opinions outweigh reality these days...)
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