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The Closing Bell: Wall Street Slides On Weak Earnings, Hawkish Fed, Saudi Concerns
FYI: U.S. stocks fell the most since last week’s rout as investors continue to grapple with higher rates at the same time the Trump administration’s trade war with China adds to concern over global growth. Treasuries rose with gold.
The S&P 500 slid back below its 200-day moving average, the Dow Jones Industrial Average shed more than 320 points and the Nasdaq 100’s rout topped 2 percent as the latest batch of corporate earnings added to concern that global growth may be slowing. The weakness in American stocks comes after China sank overnight, bringing losses in its major benchmark to 30 percent since January highs.
The dollar touched the highest in more than a week, while the 10-year Treasury yield fell to 3.17 percent. Italy’s yield spread over Germany’s hit the highest level since 2013 as European Union officials questioned the country’s budget plan. Regards, Ted Bloomberg Evening Briefing: https://www.bloomberg.com/news/articles/2018-10-18/your-evening-briefing
2 days ago the market soared on strong earnings. Today it fell on weak earnings. I wish the market would make up it's mind. Or maybe it's just the financial reporters who haven't a clue.
When will “investors” begin to flee their passive index funds in favor of 3-4% on cash and / or very short duration investment grade bonds? After a 10% loss? 20% loss? maybe 30%?
I'm thinking that somewhere in the 10-20% range will have them heading for the hills VOWING never to come back. And that's as good a guess as you'll get from folks who supposedly know what they are talking about. You should already know that I sure don't.
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