Mileage Psycho Posted March 23, 2020 Share Posted March 23, 2020 This is going into the history books, I think I'm going to start looking at the tech sector this week, although David Tepper thinks the broader market may dip another 10-15% which I think could pressure the techs lower. Quote Dow briefly wipes out all the gains since Trump’s election President Donald Trump has long pointed to the stock market’s success under his administration as a tangible endorsement of his economic policies and had often boasted about the Dow Jones Industrial Average’s gains since his election. That was, of course, before investors knew about the new coronavirus. With COVID-19 and measures to contain its spread seeding economic angst across the globe, the Dow’s steep drop on Monday briefly pushed the 30-stock index below the level where it closed on Nov. 8, 2016, the day Trump won the 2016 election over Democrat Hillary Clinton. The sell-off is part of a historic market meltdown that has sent the Dow down nearly 40% since last month. At their lows, Dow industrials fell 960.33 points, or 5%, to trade below its close on Election Day 2016 at 18,332.74. The index later moved off its session lows to close at 18,591.93, 259 points above its close on Election Night 2016. The sell-off on the week’s first day of trading put the index down more than 37% from its all-time high notched in February. The S&P 500 was more than 34% below its February high by Monday’s close. The White House declined to comment on Monday’s market sell-off or the reversal in the Dow’s gains since the president’s election. The latest setback for Trump comes after the Dow last week fell below the level it traded at prior to his inauguration. At that time it still managed to retain its post-election gains, when Wall Street snapped up stocks as the promise of corporate tax cuts and regulation rollback was enough for investors to bet on U.S. profit growth. “I’m very hopeful and optimistic on what [Trump’s election] means,” billionaire investor Stanley Druckenmiller said on Nov. 10, 2016. “The fears of protectionism, while valid, are greatly oversized relative to the benefits to the other parts of the economy [from deregulation and tax reform].” “This economy is so over-regulated and people are just drowning in red tape, that the removal of that, and I’m expecting serious tax reform, cuts to the corporate tax rate. ... So I’m quite, quite optimistic on the economy,” he added at the time. But U.S. stocks have been in a violent free fall over the last month as efforts to contain COVID-19 stoke fears of a global recession. Federal and state governments have forced the closure of businesses and borders around the world, which economists warn will likely lead to significant job loss and GDP growth declines. Some, such as former National Economic Council Director Gary Cohn Those fears have manifested themselves in the stock market’s plunge. But the losses may prove a tough blow to Trump, who has for years used the Dow as an effective referendum on the success of his economic agenda. Most recently, Trump highlighted on March 13 an autographed chart showing the Dow spiking at approximately the same time he began an emergency coronavirus news conference. Quote Link to comment Share on other sites More sharing options...
f7ben Posted March 23, 2020 Share Posted March 23, 2020 I think we grind lower until we get some businesses being told to open back up and these lockdowns are over. 1 Quote Link to comment Share on other sites More sharing options...
Edmo Posted March 23, 2020 Share Posted March 23, 2020 I think we’re still a week or two from the bottom. Until this virus curve flattens out the fear will win over optimism. 1 Quote Link to comment Share on other sites More sharing options...
Platinum Contributing Member steve from amherst Posted March 23, 2020 Platinum Contributing Member Share Posted March 23, 2020 3 minutes ago, Edmo said: I think we’re still a week or two from the bottom. Until this virus curve flattens out the fear will win over optimism. It will, and is to be expected. Quote Link to comment Share on other sites More sharing options...
Anler Posted March 24, 2020 Share Posted March 24, 2020 Maybe we can all borrow a trillion from the fed and buy stocks with it? When the stocks double you pay the trillion back and now you have a trillion dollars worth of stock. Easy peazy. Quote Link to comment Share on other sites More sharing options...
motonoggin Posted March 24, 2020 Share Posted March 24, 2020 37 minutes ago, Anler said: Maybe we can all borrow a trillion from the fed and buy stocks with it? When the stocks double you pay the trillion back and now you have a trillion dollars worth of stock. Easy peazy. Lol, isn't that basically what's happening? Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted March 24, 2020 Share Posted March 24, 2020 4 hours ago, Mileage Psycho said: This is going into the history books, I think I'm going to start looking at the tech sector this week, although David Tepper thinks the broader market may dip another 10-15% which I think could pressure the techs lower. If the market still falls with a promise of a bail out coming soon and the fed offering whatever it takes, what makes you think it won't continue to fall when the businesses all start to fail? The politicians have all got their money out, they are running out of incentives to hold up the bubble. Quote Link to comment Share on other sites More sharing options...
Edmo Posted March 24, 2020 Share Posted March 24, 2020 25 minutes ago, revkevsdi said: If the market still falls with a promise of a bail out coming soon and the fed offering whatever it takes, what makes you think it won't continue to fall when the businesses all start to fail? The politicians have all got their money out, they are running out of incentives to hold up the bubble. Wrong. It’s still falling because they don’t have a deal. The deal will start the upward trend...just wait. It already started up and fell again when the deal fell through. Quote Link to comment Share on other sites More sharing options...
revkevsdi Posted March 24, 2020 Share Posted March 24, 2020 2 minutes ago, Edmo said: Wrong. It’s still falling because they don’t have a deal. The deal will start the upward trend...just wait. It already started up and fell again when the deal fell through. Americans don't have any patients. When this thing is still out of control in a week, the market will freefall. Someone got pissed and asked why people don't have money saved up for a rainy day and why they need a hand out immediately. Yet not a word about Boeing and other corps having their hands out immediately. So when the economy shuts down for a week or two what will happen when the bankruptcies start? 1 Quote Link to comment Share on other sites More sharing options...
Anler Posted March 24, 2020 Share Posted March 24, 2020 54 minutes ago, motonoggin said: Lol, isn't that basically what's happening? Yeah but they won't let me borrow a trillion for some reason idk. Quote Link to comment Share on other sites More sharing options...
Woodtick Posted March 24, 2020 Share Posted March 24, 2020 I’m watching Bhen’s next move,and doing the opposite. Quote Link to comment Share on other sites More sharing options...
Anler Posted March 24, 2020 Share Posted March 24, 2020 5 minutes ago, Woodtick said: I’m watching Bhen’s next move,and doing the opposite. Keep shorting! Quote Link to comment Share on other sites More sharing options...
Anler Posted March 24, 2020 Share Posted March 24, 2020 The fed is dumping $1 trillion per day into the repo market, what's happening with that money and what collateral are they putting up? $1 trillion per day and we are still going down. Not good. Quote Link to comment Share on other sites More sharing options...
Woodtick Posted March 24, 2020 Share Posted March 24, 2020 Just now, Anler said: Keep snorting meth like Bhent Um,no. Quote Link to comment Share on other sites More sharing options...
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