Trump's Election and the Markets

Discussion in 'Finance, Investments, and Careers' started by crisper57, Nov 9, 2016.

  1. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    Yeah this week has been pretty bad for the markets.

    Down nearly 200 on Monday, over 300 on Tuesday, slightly up wed and thur and then down nearly 450 as I type this on Friday. That's just the DOW, Nas and S&P not been good either.

    The funny thing is what "they" claim is driving the markets down really isn't that bad. Apple put up record earnings, yes their iphone sales were off, but because of the much higher prices, they actually earned more money from iphones last quarter than expected, and had a higher average sales price. Their guidance was not only not particularly bad, it was already baked in. But everyone reported it as negative so the stock is .down a bit today and that is allegedly what is pulling the overall market down, big stocks like Apple and Google.

    Amazon is my saving grace today virtually every stock I own is down today but Amazon is up nicely.

    Barring a late rally, the markets will close about 900 points off the close last Friday, worst week in quite awhile. But of course January was so good it was amazing, so not a huge surprise.
     
  2. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    Dow ended up closing -660, with both Nasdaq and S&P down ~2%. Worst week in over 2 years it looks like. Feds raising interest rates, and fears of inflation are what's causing the sell-off. Strong earnings and job report didn't do much to curb the hysteria. Markets will continue to fall until Feds stop raising interest rates it seems. A correction was due at some point, just surprised it took this long.
     
  3. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    Yep on CNBC they were saying it's largely related to the bond market and yields going up which is related I guess to interest rates. If bonds start to go up, people sell out of stocks into bonds because it's safer, and that drives stocks down.

    Agreed a correction has been a long time coming. Would love to see stocks just keep going up forever but obviously that's not reality.
     
  4. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    It's a double edged sword when the Fed raises interest rates; all types of loans now become higher, which almost always hurts earnings...also bonds and treasury notes suddenly start to look more attractive around the 3% yield. I expect a decent sell-off next week also before the market starts to stabilize. People are too emotional in their investments and freak out at any sign of trouble.
     
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  5. Dback Jon

    Dback Jon Killer Snail Contributor

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    We met with two different sets of bankers for The company I work for both expected interest rates to keep rising

    They also expect wage pressures to increase especially if the GOP immigration plan goes through As baby boomers are retiring in record numbers every year the labor pool was going to shrink the only reason we haven't had those pressures today is because of immigration
    Dramatically restrict immigration combine with a shrinking domestic labor pool due to retirement and you're going to end up with labor shortages across the board
     
  6. Absolute Zero

    Absolute Zero Registered User

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    Not a good day for stocks
     
  7. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    Stop losses and Algos turned this into a bloodbath, and no one is buying the dips yet, so expect more selling and more panic. Market 'should' stabilize after the government shutdown is resolved. As I type this...Dow just closed with biggest single day point loss ever. Crazy!
     
  8. Dback Jon

    Dback Jon Killer Snail Contributor

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    #Winning!!
     
  9. Dback Jon

    Dback Jon Killer Snail Contributor

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    Dow is now 400 points lower than it was when the GOOP passed the #TaxScam
     
  10. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    Yeah ASU prodigy called it although I was surprised at just how bad it was today. At one point the Dow was down 1600, 10 minutes later it was 800 and you thought OK the fools have all sold, and then bam down again finished down over 1100.

    The market needs corrections but when it's this fast you get concerned about momentum. Cramer is calling it a "flash crash" where the selling volume is just so high the markets can't handle it and panic sets in.

    oddly I was watching Trump speaking earlier and bragging up a storm but he said nothing about a market that was down 675 points as he was talking.
     
  11. Kel Varnsen

    Kel Varnsen Moderator Contributor

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  12. Absolute Zero

    Absolute Zero Registered User

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    "Largest Single Day Point Decline Ever" Per CNN
     
  13. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    This is pure emotion, coupled with algorithms protecting gains. I expected a 300-400 point loss today, but emotion set in and people started to panic sell. Smart ones are buying the dips right now in small chunks, because it's tough to gauge how much lower it will go with such volatility. Fundamentals are still good, so just as the market went up on hype...it goes down on hype.
     
  14. Russ Smith

    Russ Smith The Original Whizzinator Contributor

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    yeah if I had more cash in my IRA's I'd have been buying today but in the 2 I mostly trade in, I'm over 90% stocks right now so not much cash to buy with. Obviously last week and today I took a big hit, but I'm still playing with house money from the prior 13 months so not really worried.

    I used to try and get in and out and finally decided the folks here and elsewhere were right, trying to time the market doesn't work.
     
  15. AsUpRoDiGy

    AsUpRoDiGy Magnanimous

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    Timing the market never works unless you're a MM, and then you're gold.
     

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