Trump Crisis Finally Hits Stocks As Concerns Mount Over GOP Defections

Trump doubling down on trade wars, followed by retaliations from EU, China, Canada, Mexico; these are all the factors that have led to Harley Davidson announcing that it will shift more productions to Europe. Add to this uncertainty / volatility, the dotard planning to crack down on Chinese investment in major technologies in the United States, the Dow shed ~ 400 points, or 1.7%

The drop left the index on track for its worst day in two months and its ninth decline in the past 10 sessions.

Tech stocks took the biggest hit. Until today, the tech sector had been mostly spared from the trade worries on Wall Street. The Nasdaq hit a record high as recently as last week.

http://money.cnn.com/2018/06/25/investing/dow-jones-stock-market-trade-war/index.html

 

that was first reported by both WSJ and Bloomberg early in the AM.

• This reporting was dismissed by Treasury Secretary as fake news; Steven Mnuchin put out a tweet that indicated the administration won't focus its restriction efforts solely on China but to all countries http://www.nydailynews.com/news/politics/ny-pol-mnuchin-china-tech-20180625-story.html

• But, later, Trump's trade advisor, Peter Navarro contradicted Mnuchin's claim, saying that there are no plans to impose restriction on any country https://www.cnbc.com/2018/06/25/nav...vestment-restrictions-on-china-and-other.html

Later, at the WH press conference, Press Secretary, Sarah H Sanders, could not either confirm nor deny either position

it's deja vu all over again---team Trump not getting their story straight---just like the child separation controversy

 

Trump no longer talks a lot about the stock market. Here’s why

During his first full year in office, Trump tweeted the phrase “stock market” 46 times, almost once a week. This was before the Trump-initiated tariff war and his threatening to leave the NAFTA and WTO

on Jan. 26, the S&P 500 reached 2,872; then came Trump's threat of a global tariff war and leaving the WTO and NAFTA. since then, the S&P has dropped ~ 20%; on a year-to-date basis, the stock market has been net negative. since then, Trump has tweeted about the stock market only twice, one was to question why there is no correlation between good employment data and the stock market.

“The markets were lulled into a sense of complacency in the first year of the president’s term,” said Michael Cembalest, chairman of market and investment strategy for J.P. Morgan Asset Management. “This year you’re getting another side of Trumpism,
the incessant self-inflicted wounds.”


http://thehill.com/policy/finance/3...-talks-a-lot-about-the-stock-market-heres-why​

 

Sensing that the trade war against China has not been trending the way that he had hope for,

as explained by post # 611 in this thread,
http://bbs.clutchfans.net/index.php...nium-geaux-trump.288773/page-31#post-11895515,​

Traitor Trump doubles down again

Trump’s threat to launch a full-blooded trade war with China---hitting all Chinese imports w tariffs---has alarmed investors.

US stock market futures are falling, suggesting that shares will drop when trading begins on Fri 20, Jul 2018

​

 

following yesterday's drop of ~ 820, triggered by computerized programmed-selling, the DOW dropped > 500 today.

The double top formation, a bearish signal, was evident in ~ 1 Oct 2018
​

forever the gutless chicken bleep, the dotard blames the Fed, headed by his pick J Powell, for raising interest rate to keep inflation at bay

During his campaign, Trump had bashed the former Fed Chairman, Janet Yellen, for
keeping the interest rate low. that was the reason for replacing her w the more hawkish,
and a life-long Republican, J Powell.
​

F**king dotard, the flip-flopper

​

 

not if the economy continues to grow, which is what the Fed's economic data show

continuation of the job creation trend, over the past 80+ months, in the US
tax cut
​

the dotards touted the strength of the economy; the stock market reached all-time highs



then the dotard attacked the credibility of the Fed, headed by his hand-picked J Powell,

saying that the Fed has gone crazy, effectively that
the Fed's economic data can't be relied upon.​

it, needlessly, scared the bleep outta the traders, leading to massive programmed selling

another vivid eg of "self-inflicted" wound by the dotard

 

why do these stocks have high PEs in the first place ?

their prospect of higher growth, relative to other investment alternatives, such as bonds and gold,
warrants the high PE
​

the stock markets overseas had been tanking before Trump took office. the stronger US economy became a more viable destination
for overseas $$$, in particular EU, Japan and China, which has added more fuel to rocket the US stock market rise.

the Fed's recent policy steps were based on projected higher economic growth. Alas, the dotard's questioned the credibility of the Fed, which created uncertainty (as to the US economic growth) among the traders. this was the coup de grace that triggered massive programmed selling

 

bluntly put, PGab,

the only thing you know about economics / the stock market is that you don't understand them.​

so just STFU

 

a picture is worth more than a thousand words; let's look at a chart to illustrate market valuation using Trailing-Twelve-Month PE data.



the current Trailing-Twelve-Month PE, as of 1 Oct 2018, is ~ 22.2, which is on a par w 1960, and ~ 40% lower 2000 when it was 34


https://www.advisorperspectives.com/dshort/updates/2018/10/01/is-the-stock-market-cheap