The Mainstream Media Declares That This Is “The Worst Time In Decades To Make Money In The Markets”
The Mainstream Media Declares That This Is “The Worst Time In Decades To Make Money In The Markets” by Michael Snyder – The Economic Collapse Blog
It looks like the turmoil for the financial markets is going to continue to get worse, and the mainstream media is really starting to freak out. Just a few months ago, they were continuously using the word “booming” to describe the state of the U.S. economy and they were assuring us that the stock market was going to continue to go up. But after a couple of really bad months, there has been a dramatic psychological shift. Instead of telling us that everything is going to be great, now the mainstream media is starting to sound just like The Economic Collapse Blog. For example, Bloomberg just posted an article with this rather startling headline: “It’s the worst time in decades to make money in the markets”…
Market statisticians are falling over each other in 2018 to describe the pain being felt across asset classes. One venerable shop frames it this way: Things haven’t been this bad since Richard Nixon’s presidency.
Ned Davis Research puts markets into eight big asset classes — everything from bonds to U.S. and international stocks to commodities. And not a single one of them is on track to post a return this year of more than 5 percent, a phenomenon last observed in 1972, according to Ed Clissold, a strategist at the firm.
Usually there are at least a few asset classes that are making money, but in 2018 nothing is working.
And it appears that Wednesday is going to be another really tough day on Wall Street. As I write this article, Dow futures are down more than 300 points, and that almost certainly means that the Dow will be pushed well below the 25,000 threshold.
As I have discussed before, 25,000 is a key psychological resistance barrier for the Dow. If stock prices break through that barrier and don’t immediately bounce back, the rush for the exits could become a stampede.
The biggest piece of news that is rattling investors at the moment is the fact that Huawei CFO Wanzhou Meng was just arrested in Canada, and it looks like she will be extradited to the United States. She is also the daughter of the founder of the company, and that makes her a very powerful woman in China.
Needless to say, the Chinese are very upset about this, and they are promising to “take all measures” to protect her “legitimate rights”. The following comes from their official statement…
At the request of the US side, the Canadian side arrested a Chinese citizen not violating any American or Canadian law. The Chinese side firmly opposes and strongly protests over such kind of actions which seriously harmed the human rights of the victim. The Chinese side has lodged stern representations with the US and Canadian side, and urged them to immediately correct the wrongdoing and restore the personal freedom of Ms. Meng Wanzhou. We will closely follow the development of the issue and take all measures to resolutely protect the legitimate rights and interests of Chinese citizens.
Unless Meng is released, and that seems very doubtful at this point, you can absolutely forget about any sort of a “truce” between the United States and China.