Bang! Here we go again - markets just cant shake off this downward pressure despite short term recoveries which keep sucking buyers in. I think we could be on the verge of another fairly sizeable sell-off.
It does not bode well when the government and the Fed are not singing from the same hymn sheet. Have the Donald's chickens come home to roost
While all markets are down, tech stocks are taking a battering as their historic premium to the market simply disappears overnight. There will be a time to buy back into tech shares, however with the market in freefall it would take a brave investor to jump in, lock stock and barrel just now.
That was some bounce yesterday! Personally I am not convinced that the worst is over yet. There may not be an awful lot more downside but I think we will fall below recent lows. All of the issues which cause initial fall have not been resolved. Far from it!
This market must be a brave traders heaven None of the issues which caused the big sell-off last week have in any way been resolved. More of the same in the short term
Under normal circumstances you would think the 1000+ point sell-off was the big sell-off which often indicates the bottom of the market. However, with DT at the helm there is seemingly a lot more bad news to come. He would appear to be letting his ego get in the way of actually running the country. Sometimes you just have to admit you were wrong, or cant do what you had hoped, and move on.
Investors are now opening their eyes after the Apple profits warning - however, how sharp is the slowdown?
Aaron Pressman of Fortune: "JANUARY 3, 2019 You may have heard overnight that there was a little news about the first fourth-ranked U.S. company by market capitalization. In a blab-fest worthy of Dr. Phil, Apple CEO Tim Cook issued a 1,370-word letter to investorsabout a surprise 5% revenue drop, then went on CNBC for another 15 minutes of excuse-making." This shouldn't be a surprise. Apple has filled the pipeline with essentially the same phone in the last few model releases and consumers are hanging onto their current phones longer. Apparently, no 5G models will be out in 2019. Second, the price of the phones is in nosebleed territory over US $1,000. (Yes, I know, Samsung also pushes the price envelope.) Third, Apple hasn't been able to grow the services side of the business to compensate for the hardware sales stall. And President Xi is encouraging Chinese citizens to be more reliant on themselves, including buying Chinese-made products. Cook's whining about tariffs is, in my opinion, a smokescreen for failure to steer the ocean liner Apple. Rather, I give kudos to President Trump for trying to break the back if the trade imbalances with China and a few other countries. The tariff business will be resolved, but it won't be next week. Of the market leaders, FedEx and Caterpillar share prices fell in December. Some other large caps have also declined. Why are pundits so surprised about Apple? Me? I am perfectly happy to collect and reinvest dividends. But then I don't have to trade for a living. I have seen short term crash levels since the 1970s, not to worry. I'll be back. Some hedge fund managers won't.
