Worst Day of an Awful Year Leaves No Corner of Market Unscathed

[Yo_Mama_Been_Loggin]

One of the toughest years for financial markets in half a century got appreciably worse Tuesday, with simmering weakness across assets boiling over to leave investors with virtually nowhere to hide.

Stocks buckled for a second day, sending the S&P 500 careening toward a correction. Oil plumbed depths last seen a year ago, while credit markets -- recently impervious -- showed signs of shaking apart. Bitcoin is in a freefall, while traditional havens like Treasuries, gold and the yen stood still.

Add it all up -- the 2 percent drop in equities, oil’s 6 percent plunge, the downdraft in corporate bonds -- and markets ended up doling out one of the worst single-session losses since 2015. The S&P 500 erased its gain for 2018, oil tumbled to a one-year low and and an ETF tracking junk bonds capped its worst streak of declines since 2014.

“While there’s still no ‘panic in the streets,’ most traders are unconvinced that the selling will slow down anytime soon,” said Larry Weiss, head of trading for Instinet LLC in New York. “The flight to quality is now a flight to cash. It’s tough to convince anyone that now is the time to put money to work.”

Behind the harmonizing losses is dread for the future. Corporate earnings, the fuel for the longest bull market ever recorded in U.S. stocks, appear to have peaked, and President Donald Trump’s trade war shows no sign of abating. As grim as the message from markets has been, Jay Powell’s Federal Reserve shows no sign of easing back on the interest rate hikes that create nightmares for holders of some $5 trillion in corporate bonds that have been sold by S&P 500 companies in the past decade.

https://www.msn.com/en-us/money/markets/worst-day-of-an-awful-year-leaves-no-corner-of-market-unscathed/ar-BBPVvya?li=BBnb7Kz

[GusBob]

1. We took all our money out in Nov 2016

Moved to money market.

Just a little to do with Trump really.

Read that book Flash Boys. Wall Street is full of crooks.

[ooky]

3. I was ready to do that after the 2016 election but never got a chance to before it started going

up up up again. So I decided to wait a little longer and it kept going straight up until early into 2018. Then when it first tanked I gratefully took my gains and ran. Its been a see-saw graph ever since, flat for the year. Since then when the Dow reaches the level it hit today or drops a little further it shoots back up toward 26,000 again, almost like its somehow being manipulated.

[GusBob]

4. Somehow being manipulated Lol

Read the book. They are all crooks

[duforsure]

2. Many economsts have said this would happen

And now we see trump and the gop have done it again, just like what happened to W bush. They took trillions out of the economy from their policies and trumps tariffs and new NAFTA, and other deals he's broken from. You don't run up the deficit without the interest rates being risen . You don't give trillions to the wealthy and corporations without destroying the deficit, and then use it to take trillions out of Medicaid , Medicare, and Social Security with out hurting the economy. Once again trickle down economics only goes to the rich, and then causes this huge crash to happen every time they do it. Of course they'll claim its the Democrats faults. But this will hurt the trump supporters the most. They did this to themselves voting for them. They're trying to give the wealthy even more now too with another tax scam bill. .