Global Stocks Tumble on Tariff Talk

After some POTUS tweets on tariffs with China stocks globally have tumbled by a couple of percentage points. US futures have been off 1-2% all night long.

Additionally interest rates as measured by the 10 year treasury have dropped 4 basis points.

It would appear to me that there won’t be widespread losses in income securities thus we doubt we will see widespread bargains being created–but one never knows for sure. If you have a shopping list you should keep it handy–just in case.

I think it is more likely that markets will normalize by the end of the day Monday. If there were to be a multi day selloff of common stocks there is always a chance that preferreds could be sold off by nervous nellies–which is where bargains could be created.

We shall watch.

5 thoughts on “Global Stocks Tumble on Tariff Talk”

  1. A short seller has tweeted that there is a definite pattern. Washington says positive things when our markets are open to keep them from dropping. After Market close, they say negative things. It’s part of a strategy to damage the Asian Pacific markets but keep ours as high as possible. The idea is to put the maximum pressure on China.

    Forget the politics, for the “gambler”, you may want to play that pattern. I for one would never ever do this but some folks may want to “gamble”

  2. China is playing the long game and are playing the US and trump. They are much more interested in their Belt and Road Initiative (BRI) then in tariff talks with the US which are just a useful diversion in my opinion.

  3. Perhaps if the media would not create hysteria by using headline words like MARKET PLUMMETS, but factual words like MARKET DROPS, many investors would not be so quick to sell, but to sit tight for further information. The PLUMMET took place in the Asian markets, dropping up to 7+% overnight. The Chinese want to wait out President Trump, but it appears he has now lost patience with the nature of the negotiations . The Asian culture is well
    known for extreme patience and extreme bargaining, unlike Western cultures.
    Pretty hard to meet in the middle with this backdrop.

    1. Howard- media hysteria? If George Bush 1 or 2 tweeted the stuff that POTUS tweeted the market would be down 20%. Don’t blame the messenger when the POTUS should be more reasonable and diplomatic.

  4. I also believe this is a one-day event. There is an old saying that “Wall Street hates uncertainty”. I don’t think the day is upon us yet but if the Street does begin to believe the administration represents uncertainty, they will sell off in a multi-day event. This should be a nice opportunity if you are patient

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