Down goes the Dow

^at least he was right on one thing

https://www.usatoday.com/story/money/2019/11/13/interest-rates-powell-tells-congress-federal-debt-unsustainable/2582302001/

^at least he told the truth....once....

Ghost of Igloi wrote:

https://twitter.com/NorthmanTrader/status/1274398211571138560?cxt=HHwWgIC68fuaya8jAAAA

you realize that's from 2016, right?

Man, isn't this past your bedtime?

seattle prattle wrote:you realize that's from 2016, right?

I believe that was his point SP.

VS-SJW-IR-TS idiot wrote:

seattle prattle wrote:you realize that's from 2016, right?

I believe that was his point SP.

Well, it's hard to understand that his comment has any relevance when Trump just today in Tulsa lauded how fantastic the markets are and will continue to be if he is reelected. My point is, this is not what he is saying anymore. He said that to criticize the previous administration. That may have been his view over 4 years ago, not now, and the fact that he would call it a fake market then but push for more rate cuts now, frankly just calls into question everything he says (which is the only reasonable take-away, btw).

seattle prattle wrote:... the fact that he would call it a fake market then but push for more rate cuts now, frankly just calls into question everything he says (which is the only reasonable take-away, btw).

Um, well, duh... ?

the idiot from the tablet wrote:

seattle prattle wrote:... the fact that he would call it a fake market then but push for more rate cuts now, frankly just calls into question everything he says (which is the only reasonable take-away, btw).

Um, well, duh... ?

yeah, i see what you mean there. It's late.

Bingo. Anyway, both parties will say almost anything or do almost anything to get votes. The Republican tax cut was one of the worst that I can remember (following Vietnam and Iraq Freedom wars). Keep in mind that fueled the stock buybacks, and a 15-20% rise in S&P 500 EPS. And, gave us zero in reserve for the pandemic. Add the foolish Fed policies that did the same since 2015. Poor leadership across the board.

All eight indexes on our world watch list posted losses through June 22, 2020. The top performer is China's Shanghai with a loss of 2.78%. Our own S&P 500 is in second with a loss of 3.50% and in third is Tokyo's Nikkei 225 with a loss of 5.15%. Coming in last is France's CAC 40 with a loss of 17.22%.

https://www.advisorperspectives.com/dshort/updates/2020/06/22/world-markets-update-june-22-2020?bt_ee=rnZkKObNJPeO9RiIz1vXu9Rm8wsiIn%2Fpx%2FdChU5tUpKKz%2BqY9Ef00Cvm4dWX8xAb&bt_ts=1592914951923

Portia wrote:

All eight indexes on our world watch list posted losses through June 22, 2020. The top performer is China's Shanghai with a loss of 2.78%. Our own S&P 500 is in second with a loss of 3.50% and in third is Tokyo's Nikkei 225 with a loss of 5.15%. Coming in last is France's CAC 40 with a loss of 17.22%.

https://www.advisorperspectives.com/dshort/updates/2020/06/22/world-markets-update-june-22-2020?bt_ee=rnZkKObNJPeO9RiIz1vXu9Rm8wsiIn%2Fpx%2FdChU5tUpKKz%2BqY9Ef00Cvm4dWX8xAb&bt_ts=1592914951923

Preliminary 2020 S&P 500 GAAP EPS $11.88 down -$23.65 a share from 2019 Q4 of $35.53. That is the lowest quarterly EPS since 3/31/2009 when the S&P 500 was trading at 797.87. Higher Covid 19 expenses driving operating margins to 5.86% down from 2019 Q4 of 10.61%. The lowest operating margin since Q1 2009.

Ghost of Igloi wrote:

Portia wrote:

All eight indexes on our world watch list posted losses through June 22, 2020. The top performer is China's Shanghai with a loss of 2.78%. Our own S&P 500 is in second with a loss of 3.50% and in third is Tokyo's Nikkei 225 with a loss of 5.15%. Coming in last is France's CAC 40 with a loss of 17.22%.

https://www.advisorperspectives.com/dshort/updates/2020/06/22/world-markets-update-june-22-2020?bt_ee=rnZkKObNJPeO9RiIz1vXu9Rm8wsiIn%2Fpx%2FdChU5tUpKKz%2BqY9Ef00Cvm4dWX8xAb&bt_ts=1592914951923

Preliminary 2020 S&P 500 GAAP EPS $11.88 down -$23.65 a share from 2019 Q4 of $35.53. That is the lowest quarterly EPS since 3/31/2009 when the S&P 500 was trading at 797.87. Higher Covid 19 expenses driving operating margins to 5.86% down from 2019 Q4 of 10.61%. The lowest operating margin since Q1 2009.

I know, right?

It's like the Woody Allen joke in which he tells the doctor, hey, my brother is crazy, he thinks he's a chicken.

The doctor asks why he doesn't turn him in, and Woody says 'I would, doc, but i need the eggs.'

Or as I pointed out to Agip, yeah, this market sure is crazy, and I tell myself that every time i hit the buy button.

Ghost of Igloi wrote:

https://twitter.com/NorthmanTrader/status/1275469800010133506/photo/1

So what i would surmise from that graph is woe to he who would invest based solely on a correlation between corporate profits and market cap.

They are decoupled and have been for quite some time.

Got anything with market cap and he magnitude of fed interventions into the market?

I guess that depends on if you believe printing money has any positive effect on the real economy beyond a few months. Obviously you think so, but I don’t.

Is that a bridge they are building to a better spot in the economy when things can be firmed up, or is it a plank with nothing at the end but a big drop.

Tough to say.

But it will take time to play out and the near future seems a lot less scary even if you can't see what's to come.

I was looking at "buying the dip" a half hour ago when SP500 was down 3%, then looked away for work and missed the chance... :-) I have a feeling I may come to appreciate this missed "opportunity"