Dow Plunges Below 26,000 after Donald Trump Bashes Fed

[question everything]

Source: Yahoo Finance

The Dow and broader U.S. stock market declined sharply Monday afternoon, as investors digested President Donald Trump’s latest criticism of the ‘gentleman who loves quantitative tightening,’ a direct reference to Federal Reserve Chairman Jerome Powell.

All of Wall Street’s major indexes erased gains to trade firmly in the red by midday. As of 12:42 p.m. ET, Dow Jones Industrial Average plunged 322 points, or 1.2%, to 25,703.70.The blue-chip index rose triple digits after the open, reflecting a strong pre-market session for U.S. stock futures.

(snip)

A measure of expected volatility known as the CBOE VIX surged 23% to 16.68, where it was on track for the highest settlement since late January. The so-called “fear index” settled near five-month lows on Friday.


Read more: https://www.yahoo.com/finance/news/dow-plunges-below-26-000-162935365.html

[sandensea]

1. Every time the fat bastard mentions the stock market, it's always how much "since I was elected."

No. It's since you took office (if that).

And even that's frittering away now.

[PoindexterOglethorpe]

3. Actually, it is since he was elected.

On November 8, 2016, the Dow closed a little above 18,000. The recent low, back in December, that had everyone freaking out, was still above 22,000. And right now, it's still not that far below 26,000.

The thing people here don't want to acknowledge is that a lot of his policies, as awful as they are for ordinary people, are excellent for the stock owners.

[sandensea]

4. It's not that they're "good for stock owners" in themselves

It's that Wall Street and Big Business are pleased with his ass kissing, and, predictably, reacts by pushing prices up temporarily - mostly by way of buybacks.

In any case, His Incestuousness should limit himself to his actual tenure, and not reach back months before into his predecessor's simply because it puffs up the numbers.

[PoindexterOglethorpe]

6. My point is that whether from Election Day

or Inauguration Day, the market is still up a decent amount.

And "experts" have been saying for at least two or three years now that we're due for a crash. We did have a correction last fall, although it was pretty short.

[sandensea]

7. Sure, sure.

But as we discussed, King Bone Spurs should limit his boasts to however much it's grown since he took office, not from months back into Obama's term - elections or not.

[Bengus81]

15. The DOW is still down from Jan 2018 when it hit 26,616

It jumped above it to 26,800 for about five seconds in Oct and then declined 5000 points by that Dec low your talking about. It's up since Jan 2017 but it's mostly smoke and mirrors BS unlike the run the DOW had when Obama took office.

[Yeehah]

8. 2018 was worst year for stocks in 10 years

You were saying?

[PoindexterOglethorpe]

14. Remind me again of the new lows posted last year.

Oh, right. The stock market makes new highs fairly often. You might want to look up the last time the Dow made a new low.

And yes, overall 2018 seemed pretty bad, but even so, the all time Dow high was, are you ready for this? September 21, 2018. So yeah, then it proceeded to drop nearly 20%, a classic market correction. Meanwhile, those who simply sat on what they owned and didn't panic sell, have come back.

I am constantly astonished that people here gleefully pounce on slight downturns in the stock market, but don't bother to notice when it goes up. Today's performance resulted in a shocking 0.79% downturn. People seem to think that a couple of hundred points is huge, but it's not. Look at the percentages.

The real issue, as has been discussed here before, is people who try to time the market. Bad idea. Great way to lose lots of money. Investing for the long term with a diversified portfolio has been a winner in something like almost every reasonably long term time frame (5 years or more) in the past 45 years.

[Bengus81]

16. A 5000 point drop in about 80 days last fall wasn't a "slight downturn" IMO..........

It's more of the same BS that's driving this market fueled by fat ass Trump. Sure,it's up since Jan 2017 but it's been stagnant for nearly 14 months.

[PoindexterOglethorpe]

18. And it's recovered a lot of that drop.

Maybe the problem is that people expect the Dow to set new highs far more regularly than it does. Stocks go up. They go down. They go up significantly more than they go down.

Oh, and I didn't call it a "slight downturn". I called it a correction, which is what it was.

[Bengus81]

19. Ummm....ok

"I am constantly astonished that people here gleefully pounce on slight downturns in the stock market,"

[PoindexterOglethorpe]

20. Oh, they do.

There will be breathless anticipation of the end of western civilization as we know it over any sort of drop in the Dow. Today, Thursday, at 2:30 EST, the Dow is down 228 points. Huge, yes? No. It's less than 1%.

[safeinOhio]

9. Stocks took off from the tax cut stock buy backs.

That money is gone and if there is a crash now, look out.

[Roy Rolling]

2. Give him time

Bankrupting casinos wasn't built in a day.

A swindle the size of the entire United States and millions of people takes time for them all to realize they've been swindled. And for investigators, the bigger the con, the longer it takes to work up the food chain of evidence to convict who is at the top. But when Mueller reaches the top, it's all over for the con men.

[kimbutgar]

5. The fix started getting more volatile in 2007 and we know what happened the next year.

2020 might be like 2008 that could sweep the orange maggot out of office in a landslide. Repuke overreach and incompetence.

[mopinko]

10. my x works for cboe

he always says the only way the business could fail was a decade of peace and prosperity.
they made so much money last year, in large part on the vix, that bonuses were up 50% over projections.
chaos makes the financial world go around. the market doesnt hate risk. they eat it for breakfast. it's where the big money is.

i'm gettin a little fat off this asshole, but i still want him to hang from the washington monument at the earliest possible moment.

[Thomas Hurt]

11. Is Trump doing this sh*t on purpose to line someone's pockets...

[displacedtexan]

12. That explains the early morning call from Merrill Lynch.

I lost $5k in my IRA the last quarter of 2018, and he called to tell me I made $7k this quarter. AND, OF COURSE, TRUMP HAS TO OPEN HIS DAMNED MOUTH!

[louis-t]

13. I hate headlines like this. The use of "plunges"

or "soars" are so ridiculous. "Dow soars on blah blah" often ends up being a gain of less than 1/2 percent. Stupid.

By the way, one of my clients is a hedge fund manager. He says "every time that jackass opens his mouth, we lose $275,000."

[Cold War Spook]

17. I don't care if stocks are up or down the first year of any presidency,

up or down, that belongs to the previous president. Just my opinion.