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Why would you care if you dont day trade? Its not making sense. You even SAID you take advantage of dips..
I'm sorry if you only seeing black and white, but there are shades of gray and the effects of huge market ups and downs can go beyond day trading or long term investing.
Not making sense to you does not mean that it doesn't make sense.
Personally, being in withdrawal mode, I would prefer a smooth market without long downturns that are caused for irrational reasons.
Today's correction may portend steeper drops later this week. Certainly, the China trade war is affecting the markets. The President's threats to impose more tariffs has had a depressing effect on the bull market initially, then as manufacturers accelerate their relocation of plants from China to SE Asia or back to the U.S., the economy simply absorbs the impact and resumes growth.
The tariff situation is baked in to the markets at this point. Would we have more buoyant markets if the trade war ended? Probably, because markets don't like uncertainty. But in a way, they are not really facing that much uncertainty right now. We are pretty certain what the President wants to do and is doing, and we are pretty certain how the Chinese are responding. Not much mystery there.
Manufacturers' reports in the last month or so are suggesting increases in raw materials supplies, slow-down in manufacturing driven largely by lack of qualified employees and by seasonal factors. Several indices in the stock markets suggest that only a few very large companies like Apple are driving the bull market, while there is a broad array of smaller companies that are treading water right now.
I would not be surprised if we slip into recession in the next 6-8 months, perhaps sooner. The Chinese no doubt are watching carefully; if they can resist coming to an agreement on trade and protectionism, they can deny the U.S. president a victory, maintain fear and uncertainty in the markets, maybe even push the U.S. into recession, and weaken his prospects for reelection.
The flip side of this is that it also weakens the Chinese markets. Of course, they don't have to worry about elections. But long term, they have to maintain high economic growth, or their large populace becomes unruly. I've been there, and there is a seething anger beneath the surface that stays repressed so long as times are good. If too many factories close and relocate to Vietnam, Malaysia, or Mexico, and if "Buy American" becomes more than a fringe notion, China's going to be in big trouble.
And here's another vote to keep politics out of an economics topic. Of course when the title is "well trump just opened his yap", you can expect a few Trump bashers to come out of the woodwork. All this talk about flat markets makes no sense to me; my retirement accounts are way up since the 2016 election and continue to do well.
But you have no idea that this is a short term move. The markets are forward looking and they don't like what the president is proposing.
There have always been things that have caused stock price movements. Based on history, it only impacts you if you are a short term trader of stock. Stock prices have not only recovered; but have continued to grow in the long term. If you are not a day trader, ignore the noise. It is a waste of time.
I support Trump in this regard.. it was the Chinese that backtracked on everything. I think it's high time we did something about the rampant theft of our assets. Looks like the Chinese don't understand diplomacy and only a harsh response will do the trick. Sending the entire draft full of deletions to agreed upon terms is an outrage.
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