Stocks: Market Crash Looming

[nikcers]

The Dow closed down 459 points on Monday. The Nasdaq plunged almost 3% and dropped into the red for the year. Heavy selling in tech stocks left the Nasdaq just shy of correction territory, 10% below its all-time closing high.
At one point, the Dow was down as much as 758 points, a brutal first day of trading for the second quarter of 2018. Market analysts blamed the sell-off on concerns about trade tensions and President Trump's attacks on Amazon.

 

[r3volution 3.0]

Dow -600

We're about 400 points off the March low (which had itself broken the February low).

 

[r3volution 3.0]

-750

At this rate, we might crack the low yet today.

 

[DamianTV]

"We May Take A Hit": Trump Warns Investors To Prepare For "Pain" In The Market
https://www.zerohedge.com/news/2018-04-06/we-may-take-hit-trump-warns-investors-prepare-pain-market

 

[Zippyjuan]

"We May Take A Hit": Trump Warns Investors To Prepare For "Pain" In The Market
https://www.zerohedge.com/news/2018-04-06/we-may-take-hit-trump-warns-investors-prepare-pain-market

Moments ago, Trump himself confirmed that when in a radio interview on Friday morning, the president said that U.S. markets could face some “pain’’ from the trade standoff with China and other countries, but - like on Wednesday - asserted that in the long-run, Americans would be better off due to his protectionist actions.

Everybody loves higher prices and fewer jobs. Tariff wars are easy and fun!

 

[DamianTV]

Everybody loves higher prices and fewer jobs. Tariff wars are easy and fun!

Why are you even still here? You have no affect on us other than affirming our own beliefs that you are a Paid Shill.

 

[r3volution 3.0]

Not today, Monday perhaps.

There's a lot of air under the March low.

 

[Madison320]

10 year is taking another crack at 3%.

 

[Krugminator2]

10 year is taking another crack at 3%.

FWIW

 

[Madison320]

FWIW

I'm not a believer in technical analysis like that. I disagree with the sign that says "You are here". I think we're in uncharted territory because of the total debt.

 

[Zippyjuan]

I'm not a believer in technical analysis like that. I disagree with the sign that says "You are here". I think we're in uncharted territory because of the total debt.

Debt is relative. If I owe $20 and only have $40 (debt being 50% of my assets) , that is more of a problem than if I owe $200 (ten times the debt in dollar terms) but have $2000 in cash (ten percent of assets). That is why it is often expressed as a percent of GDP.

 

[Krugminator2]

I'm not a believer in technical analysis like that. I disagree with the sign that says "You are here". I think we're in uncharted territory because of the total debt.

That's fundamental data not technical. You could be right. I just posted that because I saw it 3 minutes before I saw your post. This is obviously a much different situation than anytime when that data was compiled.

 

[Madison320]

Debt is relative. If I owe $20 and only have $40 (debt being 50% of my assets) , that is more of a problem than if I owe $200 (ten times the debt in dollar terms) but have $2000 in cash (ten percent of assets). That is why it is often expressed as a percent of GDP.

And our total debt/GDP is over 100% and rising rapidly. Most countries that get that high have a currency crisis.

 

[Madison320]

That's fundamental data not technical. You could be right. I just posted that because I saw it 3 minutes before I saw your post. This is obviously a much different situation than anytime when that data was compiled.

I thought you were going to tell me the usual response that "people have been warning about the debt crisis for 40 years and nothing has happened". And my reply would've been "looking at what happens in just one country is too small of a sample size. If you look at all the countries over a long period of time, you'll see that economic/currency crisis are very common with high debt loads."

But you didn't!

 

[Zippyjuan]

And our total debt/GDP is over 100% and rising rapidly. Most countries that get that high have a currency crisis.

Which of these countries are currently having a currency crisis?

 

[oyarde]

Which of these countries are currently having a currency crisis?

Looks like the first ten need someone to manage spending pretty badly .

 

[Madison320]

Which of these countries are currently having a currency crisis?

First of all that chart is missing a bunch of countries. Second, most of those countries are in the EU and share the same currency. And for Japan a lot of people there live in apartments the size of my closet. I've been trying to figure out a good way to look at debt/inflation correlation but it's hard to measure. For example Argentina has had lot's of bouts of hyperinflation but currently their debt/gdp is about 60%. But 10 years ago their debt/gdp was 160% and I'm assuming they got it down to 60% by massive inflation. The bottom line is that basic logic tells us that debt leads to printing which leads to price inflation.

 

[devil21]

Which of these countries are currently having a currency crisis?

I'd say they pretty much all are. The BoJ owns something like 90% of all bonds issued in Japan now and has no plans to stop buying EVERYTHING.

Been to a US grocery store lately? Gotta love a $15 T-bone steak and a $5 jar of olives. But no, all is well.

 

[Krugminator2]

Been to a US grocery store lately? Gotta love a $15 T-bone steak and a $5 jar of olives. But no, all is well.

I eat steak 3 days or more a week. I have never bought a steak for $15 at the grocery store. I have paid anywhere between $6-$9 at Wal-Mart for roughly a pound of ribeye.

No jar of olives is 5 bucks. I don't eat olives but I do eat mushrooms. A jar of mushrooms is like a $1.50 and olives are right next to mushrooms. I highly doubt they are that much more.

 

[devil21]

I eat steak 3 days or more a week. I have never bought a steak for $15 at the grocery store. I have paid anywhere between $6-$9 at Wal-Mart for roughly a pound of ribeye.

No jar of olives is 5 bucks. I don't eat olives but I do eat mushrooms. A jar of mushrooms is like a $1.50 and olives are right next to mushrooms. I highly doubt they are that much more.

Never bought doesn't mean it's not that price. These days, a "steak" is any kind of beef that's not ground up that people can afford. "Thin sliced" T-bones are $12+/lb in my area. $5 for a jar of Manzanetta blue cheese stuffed olives.

Your doubts don't change the Food Lion price tags, sorry.