This market is almost as fickle as the weather: If you don’t like the way it’s going, just wait a day. At least, this is how it has been as the month of June started. Stocks, already jolted by rising trade tensions, traded sharply lower on Monday on new antitrust fears — only to jump on Tuesday on the promise of lower rates. Not that the month of May was a walk in the park. Trade concerns and worries about slowing worldwide growth sent the Dow Industrials on the longest losing streak — six weeks — since 2011; the S&P… Read More
This market is almost as fickle as the weather: If you don’t like the way it’s going, just wait a day. At least, this is how it has been as the month of June started. Stocks, already jolted by rising trade tensions, traded sharply lower on Monday on new antitrust fears — only to jump on Tuesday on the promise of lower rates. Not that the month of May was a walk in the park. Trade concerns and worries about slowing worldwide growth sent the Dow Industrials on the longest losing streak — six weeks — since 2011; the S&P 500 declined 6.6% — the worst May performance in seven years. #-ad_banner-#If you watch the news, you know the reason: the market’s optimism about trade-war resolution has been shattered, with the possibility of new, accelerating tariffs on Mexico now coming into play — and that’s on top of already-imposed 25% tariffs on roughly $250 billion of Chinese imports (as of last Friday). This market reaction is rational: if existing trade relationships get truly disturbed, both corporate profits and consumer incomes (and spending, too) will be impacted. This can easily translate into the end of the record-setting economic growth in the… Read More