I haven't been in this thread for months. With the market meltdown I thought I would check it out.
IMO this drop in the stock market was totally predictable. For years since the 08' crises, a primary argument of stock market bulls was that stocks would go up because...where else are investors are going to go. With zero-rate policies you couldn't get any return from bonds. The Federal Reserve was effectively extorting investors to buy stocks. Bernanke was amazingly blunt years back with the second QE that he was trying to artificially inflate the stock market. But that very argument predicted this sell off. Because of the Fed hiking rates finally an investor can make a decent income from bonds whose principal is virtually guaranteed. So is it really surprising that money is pouring out of stocks?
On the whole its a good thing. Higher interest rates are good for pensions and everyone trying to generate a steady income off of investments.
What worries me is this stock market drop could cause people to feel poorer, causing them to spend less. That causes lower profits for businesses leading to layoffs. Suddenly a negative cycle kicks in sending the stock market to do worst than just a normal healthy correction.
But for right now I see this as a good buying opportunity. The trade worries are kind of dumb. Trump is totally predictable. Of course he is going to play a hardball for a time. But we all know when things look bad he is suddenly going to "make a deal". Mostly that deal will involve him selling out his own base.