Economy Stock Market Has Worst Week Since 2008

[xcvbn]

Is it really a wonder that the market skyrockets then pulls back after companies have bought hundreds of billions in stock buybacks? These gains have been purely artificial. Well, they're very real for the largest shareholders of the largest corporations but that's maybe just hundreds of people.

They're doing that thing again where they play the market and entire economy like a game of patty cake. Only thing they're concerned with is how they maintain all the wealth they've acquired over the last decade when they fuck it up again.

 

[JonesBones]

I think the market activity in 2018 was very much driven by less substantive elements. As such I think there was a fair bit of inflated value ballooning the market throughout that rise. At some point that would require a correction as stock valuation comes more in line with more concrete numbers from various companies. That's independent of anything else occuring other then FED increases which should have been expected.

Then you add in tariffs. Not only do they exert downward pressure on the market from a perception viewpoint, but they have a real effect on the bottom line. So now you have companies who's stock value was already likely sitting above their underlying financials worrying about coming in under expected numbers. Now that correction is going to be a bit deeper.

Then you have the erratic behavior from the administration. The market does not respond well to that stuff, especially when it's of the lie and then get caught in the lie variant. That's Trump's speciality too. His erratic behavior is only going to get worse now that he lost the House. Only going to get worse as the Mueller investigation keeps turning over big stones. And it's only going to get worse if the market struggles. So his own erratic behavior will beget more erratic behavior as he responds to responses to his actions.

It's becoming clear that the WH is not stable and that the president has a tenuous grasp on most subjects that he has to weigh in on, and less people capable people wanting to be involved with his administration.

So yeah I am not optimistic on the market. The every week FB scandals aren't helping either.

These things have been priced in though. Trump's behavior and tariffs. We have already been through this. I can't see the market dropping much further based on old information.

 

[JonesBones]

Is it really a wonder that the market skyrockets then pulls back after companies have bought hundreds of billions in stock buybacks? These gains have been purely artificial. Well, they're very real for the largest shareholders of the largest corporations but that's maybe just hundreds of people.

They're doing that thing again where they play the market and entire economy like a game of patty cake. Only thing they're concerned with is how they maintain all the wealth they've acquired over the last decade when they fuck it up again.

Earnings have been good. The economy is good. Stock prices are not inflated right now. The gains were not "purely artificial".

 

[JonesBones]

Those are just flashpoints mate. The fundamentals are rotten, and the "erratic behavior" was just the excuse the market was looking for to cascade. Really, who knows if this is just a head fake in the market and Q1 2019 is going to resume the upward trajectory, but the day to day news cycle isn't the underlying problem or effective cause.

Thank you. Only amateurs trade on news. The financial media is pushing a narrative. Like the guy mentioned about the Facebook smear campaign. Another media narrative. Basically nobody knows what is gonna happen, then when the market goes up or down they construct post hoc stories as to why. Nobody knows. The people on CNBC all day might as well be arguing how many angels can fit on a pin. It's nonsense.

 

[Bunk Moreland]

Sounds like a good time to buy gold and guns.

 

[ScottE]

Earnings have been good. The economy is good. Stock prices are not inflated right now. The gains were not "purely artificial".

You disagree with this post and then not a post later agree with a poster taking the same position as the post you disagree with.

You're making no sense here.

 

[ScottE]

These things have been priced in though. Trump's behavior and tariffs. We have already been through this. I can't see the market dropping much further based on old information.

Priced into what? We haven't gone through this, we still are going through this. Just because there is a reaction to implementation doesn't mean there isn't also reaction when the effect actually lands. Companies are expressing they are going to fall below their earning projections, that's going to have an effect. More over just because we've seen erratic behavior from Trump doesn't mean we are inoculated from further erratic behavior. Especially not when he ratchets it up as he has, specifically in areas that are of concern economically speaking.

 

[Greoric]

Priced into what? We haven't gone through this, we still are going through this. Just because there is a reaction to implementation doesn't mean there isn't also reaction when the effect actually lands. Companies are expressing they are going to fall below their earning projections, that's going to have an effect. More over just because we've seen erratic behavior from Trump doesn't mean we are inoculated from further erratic behavior. Especially not when he ratchets it up as he has, specifically in areas that are of concern economically speaking.

A problem here is that the president and the current divisiveness of politics are clouding people's thinking. This isn't about Trump, his Tariffs, or his tax cuts, although, yes, there is a leg to stand on with regard to his contribution to instability, or at least a media presentation of it. That's all ancillary to the fundamentals though. There are deep seated structural problems that have not been corrected for in decades, but which have been papered over by debt instruments.

If this really is the head wind of a legitimate correction, we're in for a wild ride my friends.

 

[JonesBones]

Priced into what? We haven't gone through this, we still are going through this. Just because there is a reaction to implementation doesn't mean there isn't also reaction when the effect actually lands. Companies are expressing they are going to fall below their earning projections, that's going to have an effect. More over just because we've seen erratic behavior from Trump doesn't mean we are inoculated from further erratic behavior. Especially not when he ratchets it up as he has, specifically in areas that are of concern economically speaking.

We have certainly gone through stocks crashing over tariffs and Trump's stupid behavior. We still don't know how the tariffs will play out. Same as it ever was. The market is basically alchemy and can't be figured out.

There is ALWAYS a reason for the market to crash. Some reason can always be given why it could crash and saying it would happen so they can be on record saying they predicted it. lol.

 

[JonesBones]

A problem here is that the president and the current divisiveness of politics are clouding people's thinking. This isn't about Trump, his Tariffs, or his tax cuts, although, yes, there is a leg to stand on with regard to his contribution to instability, or at least a media presentation of it. That's all ancillary to the fundamentals though. There are deep seated structural problems that have not been corrected for in decades, but which have been papered over by debt instruments.

If this really is the head wind of a legitimate correction, we're in for a wild ride my friends.

I think a lot of it may be technical too. Algos keep getting triggered. Humans aren't in control anymore.

 

[44nutman]

Sounds like a good time to buy gold and guns.

I am stocking up on Beans and Ammo.

 

[Greoric]

We have certainly gone through stocks crashing over tariffs and Trump's stupid behavior. We still don't know how the tariffs will play out. Same as it ever was. The market is basically alchemy and can't be figured out.

There is ALWAYS a reason for the market to crash. Some reason can always be given why it could crash and saying it would happen so they can be on record saying they predicted it. lol.

This is right in so far as the individual flashpoints are concerned. What's appreciable though is identifying that there can be (and are) structural issues with the market.

 

[Greoric]

I think a lot of it may be technical too. Algos keep getting triggered. Humans aren't in control anymore.

Absolutely. They definitely can add to the volatility when it comes to a run away cascade effect of a sell off. But I was speaking more fundamentally in terms of real mis-allocations of resources.

 

[xcvbn]

Earnings have been good. The economy is good. Stock prices are not inflated right now. The gains were not "purely artificial".

 

[JonesBones]

The market is oversold as fuck. Stop being a pussy and start buying. I am throwing money in that fire. This is when heroes are made.

 

[Greoric]

The market is oversold as fuck. Stop being a pussy and start buying. I am throwing money in that fire. This is when heroes are made.

Oooph. Ballsy play. I like it. Here's to you being right my man.

 

[NoDak]

The market is oversold as fuck. Stop being a pussy and start buying. I am throwing money in that fire. This is when heroes are made.

 

[Sano]

Is it really a wonder that the market skyrockets then pulls back after companies have bought hundreds of billions in stock buybacks? These gains have been purely artificial. Well, they're very real for the largest shareholders of the largest corporations but that's maybe just hundreds of people.

They're doing that thing again where they play the market and entire economy like a game of patty cake. Only thing they're concerned with is how they maintain all the wealth they've acquired over the last decade when they fuck it up again.

If something really bad happens because of their schemes I can understand why they are whispering about fleeing the country. They should be fucking tarred and feathered, and I don't say that lightly.

 

[Greoric]

If something really bad happens because of their schemes I can understand why they are whispering about fleeing the country. They should be fucking tarred and feathered, and I don't say that lightly.

I can sympathize. Millions of people were upside down on their mortgages in 08, but really even the bankers in that kind of market and legislative environment (the CRA immediately come to mind) were put in a position of either playing ball or going under themselves.

 

[Cuzcatlan]

But wasnt the tax cuts meant to make the market flush with cash. Why is everything going south?

Interest rate going up. Makes loans more expensive . Bonds become more attractive. As the bond yield goes up and people move money from stocks to "safer" bonds as they will have higher return.
Also becomes more expensive for companies to get loans.