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S&P down 1.79%, DOW 30 down 1.25%, NASDAQ down 2.34%, RUSSELL 2000 down 1.52%.
All due to the fact that Trump simply can not control himself and is hellbent on driving what was once an economy humming along beautifully right into the toilet. Thanks Trump.
I had been pleased to see that, upon the opening bell, the Dow Jones only dropped a little bit (25 points or so). However, as the morning progresses, the drop seems to be gaining momentum.
However, I have long figured out that one can't really predict the market. As we enter the afternoon, the market may rebound, perhaps out of optimism that the Chinese tariffs won't be that bad, after all.
I'm sorry for repeating this, but with 45+ years of investing and dealing with many tens of millions in business, etc. I feel that the basics are important.
Markets HATE chaos and uncertainty. So do consumers and those thinking of starting up new businesses. Just one example would be the alt energy sector. There are now 100's of thousands of NEW and decently paying job just in Alt Energy
"The solar and wind industries are creating jobs at a rate 12 times faster than the rest of the U.S. economy, according to a new report."
But if I was thinking of starting a new business, I would look at the "Chaos Climate" and think twice. Even I, as a lifelong investor and risk-taken, would worry about the shakiness that is at the top.
Consistency is the best friend of just about everything in our lives - family, income, markets, government, etc.
Now we have a loose cannon who is actually out to destroy individual businesses which have brought untold wealth to our country and world (Amazon, etc.). Of course, he won't succeed but just the fact that he is sticking his nose into such things is VERY troubling.
No doubt the market has been headed up for many years now. We are coming out of the recession and people are, by and large, working again. But Trump is doing everything he can to take us backwards...and to create a feeling of "who knows what will happen next". This could be war, trade wars or shooting wars. It could be impeachment, a criminal POTUS who is backed up against the wall or many other things.
NONE of these things is good for "the market".
I think the market will still creep up. But without Trump it might head up 2 or 3X as much.
S&P was 2300 or so before Trump was POTUS - and is now 2600. That's nice....14% or so in 2 years, but surely not what I would expect. It was about 1500 in 2000 (a somewhat normal period), meaning in 18 years it has grown about 3.5% per year compounded - quite poorly for any long term investor.
Since the market tends to make 7-11% compounded per year (over longer periods), we are way behind in terms of where it should be.
We can't forget that this poor performance means that anyone with investments - from pension funds to IRA's - has VASTLY less money than they planned for. Same goes for insurance companies and others who invest large sums of money in order to pay future obligations.
Also - when did we turn over market responsibility to Trump? Obama seemed to be getting credit as long as the marked increased under Trump?
Trump has been in office for 15 months now. He signed a massive tax cut and an even more massive omnibus bill, and the estimates are that the combination of those two actions will grow the deficit by over $1 trillion as soon as next year.
We're past the point where Obama has any more influence here. This economy is all Trump's and the GOP's.
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