Sharp sell-off in US stocks is the start of a 'very major correction'

The Fed?

 

That too, of course.

 

Things are starting to add up.
Ford is having a bad year in 2018. Its stock is down 29%, and the tariffs imposed by President Trump have reportedly cost the company $1 billion, as the company is in the midst of a reorganization. Now, the company is announcing layoffs.

Ford, the No. 2 U.S. automaker by sales, is making aggressive job cuts as part of that reorganization, NBC News reported. While the company hasn’t said how many jobs will be lost, a report from Morgan Stanley estimates “a global headcount reduction of approximately 12 percent,” or 24,000 of Ford’s 202,000 workers worldwide.”

https://finance.yahoo.com/news/ford-prepares-mass-layoffs-losing-002618564.html

Earlier this week, Moody's took its credit rating on Ford to Baa3 from Baa2 with a negative outlook, pointing to its market position and its restructuring efforts for the reasons for the downgrade.Aug 30, 2018
One step above junk.

 

The Fed has created massive asset inflation and lots of debt since 2008. Not much else

 

I hear yea...

 

Sold almost all stocks a few months ago. Correction imho should happen in the next 6 months (unless they once more do a QE and pump money into the economy) once bottom I'll buy them up cheap again.

 

No, this is what the beginning of the end looks like.

 

From what I've read so far, it looks like a reaction to the recent bond yield increases. If that's the case, probably not much cause for concern in the long run.

 

It is the opinion of some non MSM economists, that that it is just a matter of time, and events, before this propped up economy implodes. It's foundation is built of sand, and it will make 1929 look mild in comparison. The stock market is of course inflated, and it's success is an affection, and not sustainable.

And once again, this is driven by a vastly deregulated financial sector. It seems that simple greed insures that lessons learned going back to the financial driven great depression are ignored or just forgotten. The lust for profits at any cost, simple human nature has always been at the foundation of crashes, depressions and the great economic suffering of primarily non elites.

I remember some economist predicting what the deregulation of the financial sector would inevitably yield. And just looking at what has occurred since that time, in the 1970s, proves that some people are just more intelligent than wall street and big bankers. And that it is actually common sense.

What we need and may one year get, after the inevitable crash and depression, is nationalizing banking, and structuring it to serve not the elites, the rich, but serving the non elites, the People, and the nation. This is not a new idea, BTW, if you have read american history. And it did not come from followers of Karl Marx. Just very intelligent thinkers, long ago who could intuit what a banking system as we have had since 1913 inevitably leads to. And they were right, on point.

 

In my opinion, attempting to pick the market is a mug's game. Daddy Don thought that the market was very over valued prior to 2008 and pulled most of his money out and stuck it into fixed-return savings bonds. Unfortunately it was 7 years prior to 2008

As it was explained to me, saving catastrophic events (and 2008 wasn't one of those thanks to the actions of central banks to throw money at the liquidity issues) then the market tends to appreciate in the long (decades) term whatever the shorter term fluctuations. The sensible approach is probably not to attempt to pick when to invest in a single stock but instead to invest regularly, in a diversified portfolio.

Mrs Don and I probably have too much of our net worth in cash and insufficient in the market, it's probably close to 30:30:30:10 split between

• stocks and mutual funds
• property
• cash
• other stuff (gold, silver, antiques etc. etc.)

Over the last 30 years, if we had less in cash and more invested in comparatively low risk mutual funds and the like then we'd likely be significantly better off than we are now. Then again, I've never missed a night's sleep worrying about making margin calls or the current state of my investments.

 

Agree. The bigger threat is a trade war or just the simple fact that the market is somewhere between fully valued and over valued. The big bump in corporate profits from the Corporate tax cuts will not carry the market past another quarter or two.

And Brexit isn't a plus either.

 

It's tech stocks isn't it?

I assume this is because of some new tax laws.
The EU or the US is probably Hate Taxing them again.

That's the big immediate shift as far as I know


Stocks are considered to be valued high currently because money is so cheap to borrow.
You can borrow off the bank to buy stocks and make a profit on a 3% dividend.
Now that interest rates are going back up sales of stocks will be reducing.

 

Everybody should worry, major currency default and destruction of the dollar as the world's reserve currency headed our way.

 

It has a feel of 2007/8 to me. It is sounding like the Donald does not know quite what to do.

most recent news first.

https://www.theguardian.com/busines...l-street-trump-fed-us-inflation-business-live

 

This is from June!

 

I can see obama getting the blame, this market up trend started under his watch.

 

When traders lose confidence in the future, they sell. What is our future? Trade wars, higher interest rates, possible political turmoil in America....on the other hand, there is a tremendous amount of money sitting around looking for a home. But is it going into stocks, property, Tbills or cash? All of us are just pawns waiting to be suckered by the market makers so gauge your tolerance for risk and trade accordingly.

 

All the money is going to Asia, the financial parasites need a new host.

 

What are you talking about? The closing bell stock quotes were from Wednesday, October 10, 2018. The analogy from Andrew Mellon was from Feb. 2018 the last time the stock market hit lows as great as it did this past Wed.

 

I think they forgot to add the date when they added the new article. I noticed the same thing.