Market reaction to Trump's China tariffs? DOW crashes over 700 points!!!

So you're shorting the market as if there is no tomorrow, right? Putting your money where you mouth is? Or just running off your mouth spewing baseless nonsense as the libs always do/

 

I currently have around $3,500 in capital gains right now for 2018.

right now I have $2,000 in unrealized losses. Once that goes to $3,500 I sell all my shares so as to cancel out my gains.

do I go back in after that sale? I have no idea.

but shorting the market is not something I would consider lightly considering how poorly my oil investment decisions were.

 

In the real world He slapped them and there response was muted, to put it mildly. They realize they are dealing with a decisive leader, not spineless cowardly incompetent community organizer, they are terrified to retaliate.

 

Which shows you don't believe your own predictions (of the impending market collapse) either. Let me know when you sell at a loss, I will use it as a sign of the market bottom and buying opportunity

 

selling at a loss to cancel out existing capital gains is common & smart tax strategy.

everyone does it or should do it.

i have no researched shorting the market at all, and have to look into it.

i wont do any levereged funds every again, too dangerous

 

Yep, it's the second best market strategy, with the best being selling at a profit and increasing your gains

PS keep the wash sale rule in mind.

 

Maybe you missed it. Trump gave exceptions to almost everyone on steel.
Guess it was just a joke played on the steelworkers.​

Yep, everyone has some tariffs. Just the other day someone pointed out to me that the US has a 25% tariff on tuna. I looked in the cupboard and sure enough two different brands, both a product of China. Don't know how they do it. Both we under a buck a can.

I thought we were importing steel.

Shame on them. Why did Trump drop the steel tariffs on their steel?

https://www.americanthinker.com/art...ot_to_tariff_trumps_answer.html#ixzz5AdGM8Kel

Oh, but I did. You implied the US does not sell cars in China. I pointed out GM sells more cars in China than they do in the US.

It will be very difficult for the US to win a trade war with China. Xi is Premier for life, Trump only a couple of more years. You can bet your bippy China has a very comprehensive list of products produced in Republican states. You can expect retaliation there first. My guess is they will buy a lot more soy from Brazil (no tariffs required) and put the hurts on Iowa and Wisconsin. It's one of the advantages of a dictatorship. He can just make it happen. Trumps only remedy is to make things more expensive for the US consumer. Bad politics.

 

I once had quite a bit of stock in a start up I got when it started. After a few years I only had pennies invested in it, so I would sometimes go short against the box. In other words options against stock I owned. It worked pretty good. The worst thing that happened is I didn't sell it for as much as I might have. To do uncovered shorts is dangerous to me.

 

Are you sure you are not overlooking the possibility that the US buys more of their stuff simply because we have more money?
It would be a real shame to fix that by paying more and buying less.

 

Just to remind anyone who forgot:

So....the DOW lost almost 1150 points in just 2 days...mostly thanks to Trump's ridiculous, dinosaur-thinking, tariffs.

https://www.cnbc.com/quotes/?symbol=.DJI

 

So the DOW is now in official correction territory, is down for the year and the GDPNow is estimating the GDP growth for 2018 Q1 at a measly 1.8%.

 

Uh... what? Why wouldn't they be able to raise prices, what new competition would discourage them from doing so? China is a big seller because of their LOW prices, their goal isn't to raise their prices. Their goal is market share.

/facepalm

Oh MY GOD

It DOES stifle their economic growth which is why they have to be HEAVILY subsidized by the government. Dude.. do you really not understand that this is the basis of the problem? The only thing keeping the matchstick house from burning down is the fact that China is funding a poor economic model through central planning, which is apparently what once free-market conservatives want for the US too.

 

GDP = C + I + G + (X-IM)

Apparently people think that it's smart to blow up investment and consumption (which hell, is what we're good for now and shouldn't shy away from now) to fix the balance of (X-IM). It's stupid, it's bad policy, and it's short-sighted nativist bogus bullshit.

 

The great irony of all this is that when Obama was running for office, he was promising to engage in all sorts of protectionism and the GOP and Right-wing were raising hell. Now Trump does and yes the GOP and many on the Right are raising hell with him, but the Left is also raising hell. The Left are now all friendly to free-trade all-of-a-sudden. So what was with all that talk about trade restrictions before Trump came along?

 

Yes, Trump unfortunately doesn't understand that a trade deficit is not a bad thing, that said, I do agree with him that we need to enact tariffs to protect and allow the recovery of our steel and aluminum industries for national security reasons.

I don't know if I believe that tariffs on steel and aluminum are going to tank the economy, especially with the exemptions being put in place now, but if it does, then the Democrats are going to have to run somewhat right-wing-sounding in 2020. They are not going to be able to run arguing to restrict trade, when people can just say, "Donald Trump just did that and it messed up the economy."

IMO, I think that the stock market decline is just due to fears of a big trade war being sparked.

 

See, this is an opinion I can respect. At least in regards to steel and tariffs, which are unrelated to the newest announcement of FURTHER sanctions on Chinese goods. But seriously, if you support this policy for a multitude of reasons, fine, but don't be ignorance about the side-effects.

 

Start Jan 1st, 2016.

 

The tariffs against China won't do anything for the steel industry as Canada and Mexico are exempt from the earlier steel tariffs - yet (combined) they import over 12 times as much steel to America as China does.

https://www.census.gov/foreign-trade/Press-Release/2018pr/02/steel/steel3p.pdf

So the steel and aluminum tariffs 'good for national security' angle won't work here.

With respect, there is virtually no way the Dems will keep the tariffs in place when they get in office (which according to the polls - will be in 2021). And no American major company is going to build huge, expensive, new factories for tariffs that will probably only be in place for a few years at most.

So all this silliness will do is raise the price of many things to American consumers and hurt the economy overall.

Huge tariffs went out with the dodo - which is why no POTUS was dumb enough to use them en masses since 1930 AND why the markets hate them.

And a POTUS should NEVER, EVER think he/she is smarter then Wall Street.

 

Multi-national companies have the most to lose from international tariffs.

 

No problem, just return to pre-1993 levels.

 

If Mexico and Canada import over twelve times as much steel to America as China does, then how do tariffs on Chinese steel hurt American consumers? If the Chinese are not a big steel contributor to the U.S., then the tariffs shouldn't be enough to significantly raise the price of steel.

Also, what makes you think the polls say anything about the Democrats taking power in 2021? I would wait until the mid-terms at the very least before making such predictions. Predicting out to the 2020 election right now, you might as well be trying to predict what party will be in power fifty years from now. 2020 is a lifetime now in terms of politics. That said, I never said the Democrats wouldn't undo the tariffs, just that it will be very ironic I think.

And why shouldn't a POTUS think they are smarter than Wall Street? Wall Street is oftentimes just mob thinking based on either fear, greed, or some combination of the two. Hence why bubbles form so much.

 

The DOW 250 is 250 global companies.
Not the American economy.

What is best for one is not necessarily best for the other.

 

This post shows nothing to back up your assertion that the strength (or weakness) of the Dollar does not effect share prices!

 

Shares are assets.
As currency devalues, assets don't.

So when currency devalues the price of shares relative to currency is increased.



The Stock market didn't sky rocket during Mr Obama's term. It has however done so since.

 

Currency is just a token. And any commodity or asset can be used in the same way as that token - a country can deal in grains of rice if they so wish and as long as other countries except those grains of rice to purchase their products. Currencies can also be traded in the same way as shares

The stock market in Obama's same period gave a return higher than the same period in Trump's term