Stock market: Worst December since GREAT DEPRESSION

[man down]

Meh it will come back and when it does no one will say a word. Up 350 today so far.

[HOUDINI563]

Eventually. Question is when. At the very least for this to occur the trade war has to come to an end and the Fed needs to slow down/provide language more dovish the escalation of short term rates.

Growth is slowing and most believe we are coming to the end of the business cycle which means a recession is imminent. IMMINENT can mean at some point in the next 18 months.

SO if we can quickly stop the trade war and have Fed cooperation we can rebound before the great fall.

[WarVeteranO01]

I was just reading an article and it said the reason for the stock market dropping isn't consumers or investors, its Corporate debt (3+ trillion dollars). It makes sense because the economy is better and its the busiest time of year for retailers but the numbers keep dropping.

The article also said things will get worse with the stock market when interest rates go up. If things go south and we his a recession, I am investing in property!

[WarVeteranO01]

Eventually. Question is when. At the very least for this to occur the trade war has to come to an end and the Fed needs to slow down/provide language more dovish the escalation of short term rates.

Growth is slowing and most believe we are coming to the end of the business cycle which means a recession is imminent. IMMINENT can mean at some point in the next 18 months.

SO if we can quickly stop the trade war and have Fed cooperation we can rebound before the great fall.

When the feds raise interest rates things will get bad for corporations.

[HOUDINI563]

Rates have been going up. This is typical. The Fed lowers short term rates as the economy falters to spur economic activity. They raise rates as we approach full employment to best ensure inflation, SPECIFICALLY HYPERINFLATION, does not occur. Inflation (moderate inflation) in general is a good sign as it means economic activity is healthy.

The major issue with rate increases is that the stock markets competition, bonds, become a viable alternative. Many realizing the business cycle is nearing its end will pull out of the market and into a safe haven, short term bonds, take their 2-3% for two years, while waiting out for the next business cycle start. Then jump back into the market.

[Mighty_Windir]

Let's see then...

*Windir logs into his stocks account.*

"Windir sees how his stocks are performing.*

*Windir logs out.*

Its OK, people can't see me cry inside my room

[Tomjas]

Meh it will come back and when it does no one will say a word. Up 350 today so far.

https://www.cnbc.com/2018/12/18/alan...for-cover.html

[AddiX]

Same thing happened when bush gave out massive corporate tax breaks.

Get ready for the recession, it's coming

[DreamerUSA]

48 or whatever you are.

Economic signals are what they are.

Trumps actions, totally unprecedented and AGAINST ALL economic thought and economic history, are what they are.

Neither paints a good picture.

We ARE in a bear market where any single word positive/negative causes gains/losses.

We ARE in a trade war with no signs of ending. Trade protectionism is a reason for the start of the Great Depression in 1929.

I am heavily invested in the market so want it to upswing. Trumps policies however are wrecking the market. Investors worry about the economic ramifications of a prolonged trade war and if this results in a recession HOW we will be able to pull ourselves out from it.

All valid questions.

It’s those like YOU that follow blindly a person who lies every single day and who has gotten us into this mess that are to blame.

Smoot Hawley certainly didn't help the Depression, but considering it wasn't enacted as law until 1930, not sure how you can blame that for the Depression. Milton Friedman and Anna Schwartz nailed it like 50 years ago as to cause of the Depression. Hell, Ben Bernanke, admitted in a speech in honor of Friedman that they were right. I'll skip ahead. It was the Feds monetary policy.

[HOUDINI563]

The crash occurred in late 29. The depression lingered on until after the wars end. Many factors contributed to the Great Depression. A major contributor was protectionism.