The Bad Stuff That the Stock Market Worried About Is Starting to Happen

[marmar]

(Bloomberg) All of a sudden, the fundamentals aren’t looking as strong.

First it was Apple Inc.’s $5 billion revenue miss, hints of which lopped 30 percent from its stock over three months. Now it’s a closely watched gauge of U.S. factory activity, which dropped to a two-year low and missed every estimate in a Bloomberg survey.

What’s going on? Over and over in the fourth quarter, as the S&P 500 plunged 19.8 percent to the brink of a bear market, investors heard the same refrain: don’t panic, the economy, and corporate earnings, look strong.

In the last 24 hours, confidence in those assurances has taken a hit. The Dow Jones Industrial Average fell more than 600 points, or 2.6 percent, Thursday morning, while losses in the Nasdaq 100 spiraled toward 3 percent.


“The market is the wisdom of all investors -- it was discounting this type of news-flow with the sharp and violent sell-off we got in December,” Alec Young, managing director of global markets research at FTSE Russell, said in a phone interview. “When it makes a big move, up or down, it’s telling you positive or negative things about future developments. The extreme move down was telling you we’d get this type of news-flow.”

All the bad news has put an abrupt halt to what had been the equity market’s best five-day run since 2011, a surge in the S&P 500 that reached 7.2 percent at yesterday’s high point. It’s reprising anxiety that left stocks within points of a bear market on Christmas Eve. ...... (more)

https://www.bloomberg.com/news/articles/2019-01-03/bad-stuff-the-stock-market-worried-about-is-starting-to-happen?srnd=premium

[Sneederbunk]

1. Let it be known as the Trump Economy.

[csziggy]

6. I'm calling it the Trump Slump

I think that has a nice ring to it.

[Sneederbunk]

7. +100

[marmar]

8. I like it....

[Blue_true]

10. The Trump Slump.

Let's repeat that often, everywhere. People were warned last spring to get out of the market, they did not listen. I hope most are young enough to wait 10-12 years to get their nose back to the waterline.

China is headed toward a debtbomb, when that hits soon, it is goodbye world economy,

[Volaris]

13. I'm unfamiliar with what u mean...

Like China's in debt, or peeps owe money to China that they might not get back?
I ask because I don't know.

[Blue_true]

15. China has a massive amount of company and some government debt.

The debt greatly exceeds China's reserves. That situation is expected to come to a head soon. China used to be a saving nation, but that changed around 2006 when companies and the government starting using leverage, that trend has bee badly overdone.

If you are still in the market now, just stay in if you are young enough and hope that you don't develop a need for money. Anyone 55 or older are sort of screwed for a while, but if they have adequate assets elsewhere, they can ride to SS and that will help them some until democrats fix the economy (and rightwing evangelicals and the purist farleft are prevented from electing another idiot).

[lunatica]

11. Easy to remember

We can call his policies the Trump Dump!

[Quixote1818]

2. kick

[C_U_L8R]

3. Trumpocalapse

It's a deluge of dumb. Death by dotard. No one can crash a business or a country more spectatacularly than this asshole.

[lunatica]

12. Good one!

[matt819]

4. One more time

SEC needs to investigate. I’d put money on the idiot and his cronies shorting everywhere.

[Hassler]

5. The blob with the Turd Touch is turning the economy to shit.

Just like all his failed businesses.

[Ilsa]

14. #ETTD

Twitter hashtag for Everything Trump Touches Dies.

[Yo_Mama_Been_Loggin]

16. Winning Trump style